Question: As the marketing manager of a major
As the marketing manager of a major perfume company, you are considering using either one of two ingredients, Neroli oil or Orris root, in the newest perfume to be launched by the company. The cost to use Orris root is much more expensive in comparison to Neroli oil, but the company might not gain a substantial amount of business if it doesn’t use Orris root as an ingredient. You have developed the following payoff table, estimating the company’s first year profits. 
What decision will you make using each of the following strategies? a. aggressive strategy b. conservative strategy c. opportunity-loss strategy
> The Excel file Expenditure contains data on a country’s expenditure on various sports during a particular year. Create a pie chart showing the percentage breakdown of total expenditure.
> Create a pie chart for all the given dates and a stock chart for the high/low/close prices for March 2018 in the Stock Excel file.
> Create a useful dashboard for the data in the Excel file Employees. Use appropriate charts, layouts, and other visualization tools that help to convey the information. Explain why you chose the elements of the dashboard and how a manager might use them.
> The worksheet Purchasing Survey in the Performance Lawn Care Database provides data related to predicting the level of business (Usage Level) obtained from a third-party survey of purchasing managers of firms that are customers of Performance Lawn Equipm
> Create a useful dashboard for the data in the Excel file Store and Regional Sales Database. Use appropriate charts and layouts and other visualization tools that help to convey the information. Explain why you chose the elements of the dashboard and how
> Create a line chart illustrating the number of AM and PM travelers for each month in the Excel file Traveler.
> Create a useful dashboard for the data in the Excel file Restaurant Sales. Use appropriate charts and layouts and other visualization tools that help to convey the information. Explain why you chose the elements of the dashboard and how a manager might u
> Create a useful dashboard for the data in the Excel file President’s Inn Guest Database. Use the additional information stated in Problem 20 of Chapter 2: Room rates are the same for one or two guests; however, additional guests must pay an additional $2
> A survey was conduct for determine the number of vegetarians and non-vegetarians between two different group of age of people. The survey results the followings: Convert the data into percentages for each age group. Then construct a chart of count and a
> Construct an appropriate chart or charts to visualize the information in the Budget Forecasting Excel file. Explain why you chose the chart(s) you used.
> Construct an appropriate chart to show the sales per unit for the primary industry in the Excel file Primary Industry.
> The Excel file Transportation provides sales data about 10 different industries. Construct two stacked bar charts that will allow you to compare any differences due to time or age groups and draw any conclusions that you can. Suggest another type of char
> Create clustered column and stacked column charts for the pre-MBA and post-MBA salary data in the Excel file MBA Motivation and Salary Expectations. Discuss which type of chart you feel is better to use to explain the information.
> In the Excel file Automobile Quality Ranking, search for and add a new column for the country of origin for each brand. Then sort the data from the lowest to highest by number of problems per 100 vehicles in Excel. What conclusions can you reach?
> PLE collects a variety of data from special studies, many of which are related to the quality of its products. The company collects data about functional test performance of its mowers after assembly; results from the past 30 days are given in the worksh
> The Excel file Global Industry Default and Rating summarizes financial information for 32 European firms, in the manufacturing and services industries, and their perceived risk of default. Convert these data into an Excel table. Use table-based calculati
> The Excel file Stationary provides the sales data for a stationary company, and each row represents an order for its products. Convert these data into an Excel table and filter the central region for those that have sold more than 50 units. What is the d
> Convert the Order Specifications database to an Excel table. Use the techniques to find: a. the total cost of all orders. b. the total cost of all orders placed with Multipurpose Fasteners. c. the total quantity of airframe bolts purchased.
> Convert the Hospital Claim database to an Excel table. Use the techniques to find: a. the total number of claims. b. the total number of outpatient claims. c. the total number of claims in January.
> The Financial Forecasts database shows estimated variable and fixed expenses of a firm for the first nine months of the coming year. Define range names for each month and the type of expense. Then use the range names in formulas to find the total for eac
> The Excel file S&P 500 provides open, high, low, and close values for the S&P 500 index over a period of time. a. Enter any date (using the format month/day/year) within the range of the data in cell G2. Use a MATCH function in cell G3 to find the row in
> A shirt manufacturer needs to supply invoices to customers based on data from the Shirt Production Excel file, which indicates the costs (in £) and sizes. Modify the file to use the VLOOKUP function to compute the customer invoice when product specificat
> A survey was conducted to identify the type of movies watched by 15 people in the past two weeks. If the type of movie watched by one person is different from the others, then the code 1 will be assigned to that movie by the database. If they are the sam
> Create box-and-whisker charts for each type of expense in the Excel file Budget Forecasting.
> A new graduate has taken a job with an annual salary of $60,000. She expects her salary to go up by 2.5% each year for the first five years. Her starting salary is stored in cell A4 of an Excel worksheet, and the salary increase rate is stored in cell B4
> Construct histograms using the Histogram chart for the gross sales and gross profit data in the Excel file Sales Data.
> Develop a spreadsheet for computing the demand for any values of the input variables in the linear demand and nonlinear demand.
> Swissotel, London, is working on improving customer satisfaction and engagement. At the same time, Swissotel wants to ensure that the staff members are also satisfied. It has noticed that there are several areas that will need to be analyzed. The problem
> For the Cereal database, write a logical IF function that enters “Review” in column M if the rating is more than 45 and the sales is less than 150; if not, then enter a blank.
> How might analytics be used in the following situations? a. Planning a business b. Understanding customer behavior c. Solving human resource problems
> A part-time professor of a business program at a university in Germany always tells her students that one of the first questions they should ask their new employers is whether the organization has a good customer program. Why do you think the professor e
> In this chapter, we noted the importance of defining and analyzing a problem prior to attempting to find a solution. Consider this example: One of the earliest operations research groups during World War II was conducting a study on the optimum utilizati
> A tablet manufacturer is preparing to set the price of a new model. It examines the demand and cost structure, and determines the following model to represent the relationship between demand and price D = 50 + 2P The finance department estimates that the
> Discuss the use of business analytics in sports, such as tennis, cricket, swimming, and football. Identify as many opportunities as you can for each.
> Define range names for all the entities in the Hotel Overbooking Model spreadsheet and apply them to the formulas in the model.
> Define range names for all the entities in the Crebo Manufacturing Model spreadsheet and apply them to the formulas in the model.
> Define range names for all the data and model entities in the Break-Even Decision Model spreadsheet and apply them to the formulas in the model.
> Create box-and-whisker charts for each type of cost of living adjustment in the Excel file Cost of Living Adjustments.
> For the Base Data in the Excel file Credit Risk Data, use the Histogram chart to develop a histogram with a bin width of 5 for the number of months as a customer of the bank.
> Figure 2.41 shows the 2016 U.S. federal income tax rates for the four different types of filing status. Suppose an individual is single. Write one logical IF function that will determine the correct tax rate for any income that is entered in cell B3 of a
> Elizabeth Burke has received several questions from other PLE managers regarding quality, customer satisfaction, and operational performance. She would like you to summarize some data from the Performance Lawn Equipment Database using statistical tools a
> Use the Histogram chart to construct histograms for weekly usage and waiting time in the Excel file Car Sharing Survey.
> A company forecasts its net revenue for the next three years as $172,800, $213,580, and $293,985. Find the net present value of these cash flows, assuming a discount rate of 4.2%.
> In the Accounting Professionals database, use Excel functions to find a. the maximum number of years of service. b. the average number of years of service. c. the number of male employees in the database. d. the number of female employees who have a CPA.
> Return on investment (ROI) is profit divided by investment. In marketing, ROI is determined as incremental sales times gross margin minus marketing investment, all divided by marketing investment. Suppose that a company plans to spend $3 million to place
> What decisions should be made using the average payoff strategy?
> For the perfume company decision, compute the standard deviation of the payoffs for each decision. What does this tell you about the risk in making the decision?
> For Peter Cartman’s decision, compute the standard deviation of the payoffs for each decision. What does this tell you about the risk in making the decision?
> For the DoorCo Corporation decision, compute the standard deviation of the payoffs for each decision. What does this tell you about the risk in making the decision?
> Suppose that Peter Cartman is deciding whether to invest in a bond mutual fund or a stock fund. Both bond and stock funds are sensitive to changing market conditions. His analysis reveals that when the economy is stable, the bond and stock funds have ear
> The Excel file Airbnb Samples provides 15 sample room rates for five randomly selected Airbnb accommodations. Define range names for each of the samples and then use these range names in formulas to find the average value for each sample.
> The DoorCo Corporation is a leading manufacturer of garage doors. All doors are manufactured in their plant in Carmel, Indiana, and shipped to distribution centers or major customers. DoorCo recently acquired another manufacturer of garage doors, Wiscons
> A college football team is trailing 14–0 late in the game. The team just made a touchdown. If they can hold the opponent and score one more time, they can tie or win the game. The coach is wondering whether to go for an extra-point kick or a two-point co
> Consider Peter Cartman’s investment decision scenario. Use the approach described in this chapter to develop your personal utility function for the payoffs associated with this decision. Determine the decision that would result using the utilities instea
> MetaGo is a small metal parts manufacturer. It has two automatic machines (Machine A and Machine B) for daily production processes. Both the machines can produce defective metal parts. Historically, the chance of Machine A producing a defective metal par
> Drilling decisions by oil and gas operators involve intensive capital expenditures made in an environment characterized by limited information and high risk. A well site is dry, wet, or gushing. Historically, 50% of all wells have been dry, 30% wet, and
> Ravex Yacht has developed a new cabin cruiser, which they have earmarked for the medium to large boat market. A market analysis suggests a 30% probability of annual sales being 5,000 boats, 40% probability of 4,000 annual sales, and 30% probability of 3,
> For the payoff table you developed in Problem 1, determine the decision using the aggressive, conservative and opportunity-loss strategies. Data from Problem 1: Use the Outsourcing Decision Model Excel file to compute the cost of in-house manufacturing
> IM Retail deals in various products from a popular cosmetic brand Beau. The cost of stocking and selling a product varies according to whether it is in season or not. In season, the cost of a product is $12 and it sells for $18. After the season ends, th
> Perform a sensitivity analysis of David Lee’s soft drinks stall scenario. Find the optimal order quantity and optimal expected profit for probabilities of a cold weather ranging from 0.2 to 0.8 in increments of 0.2. Plot optimal expected profit as a func
> Many automobile dealers advertise lease options for new cars. Suppose that you are considering three alternatives: 1. Purchase a car outright with cash. 2. Purchase a car with 20% down and a 48-month loan. 3. Lease a car. Select an automobile whose leasi
> Modify the data in the Base Data worksheet in the Excel file Credit Risk Data using IF functions to include new columns, classifying the checking and savings account balances as low if the balance is less than $250, medium if at least $250 but less than
> Dean Kuroff started a business of rehabbing old homes. He recently purchased a circa-1800 Victorian mansion and converted it into a three-family residence. Yesterday, one of his tenants complained that the refrigerator was not working properly. Dean’s ca
> David Lee is a soft drinks stallholder at Cotton Tree Park. He must decide how many soft drink cartons to order for the coming season. Each bottle of soft drink costs $2.50 and is sold for $4.80. No inventory is carried from one season to the next. Bottl
> For Peter Cartman’s investment decision, construct a decision tree and compute the rollback values to find the best expected value decision.
> For the DoorCo Corporation decision, construct a decision tree and compute the rollback values to find the best expected value decision.
> For Peter Cartman’s investment decision, suppose that the probabilities of the scenarios are estimated to be 0.35, 0.25, and 0.40, respectively. Find the best expected value decision.
> For the DoorCo Corporation decision, suppose that the probabilities of the three scenarios are estimated to be 0.15, 0.40, and 0.45, respectively. Find the best expected value decision.
> Use the Outsourcing Decision Model Excel file to compute the cost of in-house manufacturing and outsourcing for the following levels of demand: 200, 600, 1,000, and 1,400. Use this information to set up a payoff table for the decision problem.
> Figure 15.35 shows the Solver Sensitivity Report for the Burger Office Equipment scenario. Using only the information in the Sensitivity Report, answer the following questions, explaining what information you used in the Sensitivity Report. a. Explain th
> Figure 15.34 shows the Solver Sensitivity Report for the ColPal Products scenario. Using only the information in the Sensitivity Report, answer the following questions, explaining what information you used in the Sensitivity Report. a. Suppose that the e
> Figure 15.33 shows the Solver Sensitivity Report for Valencia Products. Using only the information in the Sensitivity Report, answer the following questions, explaining what information you used in the Sensitivity Report. a. Explain why the reduced cost
> For the Bicycle Inventory database, use database functions to find the following: a. The total number of leisure bicycles on hand. b. The average purchase cost and selling price of road bicycles.
> Figure 15.32 shows the Solver Sensitivity Report after solving the Crebo Manufacturing. Using only the information in the Sensitivity Report, answer the following questions. a. Explain the value of the reduced cost (- 0.3) for the number of plugs to prod
> Suppose that Sue is considering three stocks in which to invest. She has $20,000 to invest, and so she decides to equally invest in all the three stocks. The expected return is 20% for stock A, 10% for stock B, and 12% for stock C. She would like an expe
> The Body Shop has recently launched two new hand cream varieties: Rose and Lotus. It costs $2.75 to purchase the fragrance needed for each tube of Rose hand cream and $1.56 for each tube of Lotus hand cream. The marketing department has stated that at le
> Obtain the Answer and Sensitivity Reports for Dara’s investment scenario. Develop a set of charts that visualize the key information in these reports.
> Use Excel charts to visualize the solution for the J&M Manufacturing problem using the Solver Sensitivity Report with auxiliary variables.
> Use Excel charts to visualize the solution for WoodFurni. Use the Solver Answer Report and the Sensitivity Report to facilitate your analysis.
> Construct a what-if analysis for Foodpanda as the delivering goal varies from 15 to 35 minutes in increments of 5 minutes.
> Analyze the sensitivity of the optimal solution for the local university as the total cost and available lecturers are varied. Write a short summary memo to the university management in which you outline the results and make recommendations.
> Jordan owns a magazine stall and he has 150 old magazines in storage. He is planning to sell some of his magazines with the highest price to gain a profit of $8.00 and some with the lowest price to gain a profit of $4.50. By using the what-if analysis, h
> For the Burger Office Equipment scenario, use the spreadsheet model to answer the following questions by changing the parameters and re-solving the model. Answer each question independently relative to the original problem. a. If 25% of the pine is deeme
> In the Credit Risk Data file, use database functions to find the average amount of savings for each of the situations listed in Problem 16. Data from Problem 16: Apply the Advanced Filter to the Credit Risk Data (Base Data worksheet) to find the followi
> Hahn Engineering would like to increase its return, but the project manager knows that this will require more cash and/or personnel. Conduct a what-if analysis of the optimal solution as the cash limitation varies from $150,000 to $270,000 in increments
> For WoodFurni, solve the model using auxiliary variables. Obtain the Solver Sensitivity Report, and answer the following: a. Explain the sensitivity information for the objective coefficients. What happens if the profit on wardrobes is decreased by $30?
> For the Fruity Juices scenario, formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo explaining the sensitivity information.
> For Starbucks coffee company, formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the outlet manager explaining the sensitivity information.
> Box Tile Company, use the auxiliary variable technique to handle the bound constraints on grade I and grade III tiles and obtain the Solver Sensitivity Report. Answer the following: a. Explain the sensitivity information for the objective coefficients. W
> Marketing agents have various media alternatives in which to advertise and must determine which to use, the number of insertions in each, and the timing of insertions to maximize advertising effectiveness within a limited budget. Suppose that Lilydale Tu
> Obtain the Solver Sensitivity Report for the Hal Chase portfolio optimization model. Explain how to interpret the Lagrange multipliers for the constraints.
> Figure 15.39 shows the Solver Sensitivity Report for the Markowitz portfolio model. a. Explain how to interpret the Lagrange multiplier value for the target portfolio return. b. Suppose the target return is increased from 10% to 11%. How much is the mini
> For the nonlinear pricing decision model, suppose that the company wants to keep the price at a maximum $300. Note that the solution in Figure 14.19 will no longer be feasible. Modify the spreadsheet model to include a constraint on the maximum price and
> For the Hansel Corporation, obtain the Solver Sensitivity Report and use it to answer the following: a. A labor strike in India leads to a shortage of 20,000 units of additive C. What should the production manager do? b. Management is considering raising
> Apply the Advanced Filter to the Credit Risk Data (Base Data worksheet) to find the following: a. All new car loans obtained for single females. b. All furniture loans obtained for single individuals who rent. c. All education loans obtained by unskilled
> For the ColPal Products scenario, use the spreadsheet model to answer the following question by changing the parameters and re-solving the model. Answer each question independently relative to the original problem. a. Suppose that the exposure for TV a
> For Problem (Shafer Office Supplies), obtain the Solver Sensitivity Report and answer the following questions: a. Suppose that 500 units of extra supply are available (and that the cost of this extra capacity is a sunk cost). To which distribution center
> StraitCarrier and SunShipping, obtain the Solver Sensitivity Report and write a short memo to the directors of both the companies explaining your results.
> For Dara’s investment situation, obtain the Solver Sensitivity Report and interpret the information, making recommendations that Dara might consider for her portfolio.
> For Susan’s cake recipe scenario, obtain the Solver Sensitivity Report and write a short memo to Susan explaining the sensitive information in language that she can understand.
