Homework 1
Choose 4 of following to answer.
I. As a self-study exercise, complete the self-test at the end of each chapter. Use the key at the back of the book to correct your answers. Re-study pages for any items you answer incorrectly.
II. Solving real world complex problems using either traditional optimization techniques or modern heuristic techniques would make interesting work. What do the terms heuristic and optimization (or optimal) mean? What is a quantitative application for each? Some independent research is needed. What was your source(s) for addressing this question? Provide a URL address(s) if applicable. Don't hesitate to use outside sources in addressing questions in this course, and apply your understanding as it relates to your prior knowledge and experience where appropriate.
III. What is implementation, and why is it important?
IV. Katherine D'Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even?
V. An urn contains 8 red chips, 10 green chips, and 2 white chips. A chip is drawn and replaced, and then a second chip drawn. What is the probability of
(a) a white chip on the first draw?
(b) a white chip on the first draw and a red on the second?
(c) two green chips being drawn?
(d) a red chip on the second, given that a white chip was drawn on the first?
VI. Read the WTVX case study on page 61 and answer the associated discussion questions.
Homework 2
Choose 5 of the following to answer.
I. As a self-study exercise, complete the self-test at the end of each chapter. Use the key at the back of the book to correct your answers. Re-study pages for any items you answer incorrectly.
II. Define opportunity loss. What decision-making criteria are used with an opportunity loss table?
III. Explain how a scatter diagram can be used to identify the type of regression to use.
IV. Describe briefly the steps used to develop a forecasting system.
V. In Problem 3-22 (page 99) you are introduced to Allen Young and his need for assistance in making the best investment decision using a decision table. Now, Allen is thinking about paying for a stock market newsletter. A friend of Allen said that these types of letters could predict very accurately whether the market would be good, fair, or poor. Then, based on these predictions, Allen could make better investment decisions.
a. What is the most that Allen would be willing to pay for a newsletter?
b. Allen now believes that a good market will give a return of only 11% instead of 14%. Will this information change the amount that Allen would be willing to pay for the newsletter? If your answer is yes, determine the most that Allen would be willing to pay, given this new information.
VI. Using computer software, find the least squares regression line for the data in Problem 4-13 (page 140). Based on the F test, is there a statistically significant relationship between the first test grade and the final average in the course?
VII. Consider the data in problem 5-22 (page 179) describing the sales of Cool-Man air conditioners and respond to the following:
a. The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners. Using exponential smoothing with a weight of a = 0.30, develop forecasts for years 2 through 6.
b. Using smoothing constants of 0.6 and 0.9, develop forecasts for the sales of Cool-Man air conditioners.
c. What effect did the smoothing constant have on the forecast for Cool-Man air conditioners? Which smoothing constant gives the more accurate forecast?
VIII. Read Forecasting Attendance at SWU Football Games, a case study on page 182, and answer the 3 discussion questions.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.