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Chapter: 5 -Problem: 8 >> The database Airfare s.xlsx*** contains information on the airfare on 638 routes in the United States. In addition, it contains data on the length of the route, the average income in the starting and ending cities, whether Southwest Airlines flies on the route, and other variables. The goal is to create a Multiple Linear Regression model which predicts the airfare along a given route.In each of th
Answer Preview: Sure, I can provide you with a general outline of the steps to develop a Multiple Linear Regression model for predicting airfare using the "Airfare s …

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, Chapter: 2 -Problem: 18 >> The relationship between the sales of a given brand of cereal in a grocery store and the amount of shelf space devoted to displaying it.
Answer Preview: To understand the relationship between the sales of a given brand of c…

, Chapter: 2 -Problem: 16 >> The relationship between the time it takes to complete a project and the number of people assigned to work on it.
Answer Preview: Answer and thorough Explanation. The more people that are …

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, A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 100 homes. Consultants have estimated that they should expect to find someone home 80 percent of the time. When someone is home, 65 percent of the time it is a female. Thirty percent of females make a purchase, and when they do so the dollar value of their purchase
Answer Preview: To calculate the total revenue, standard deviation of total revenues, and the probability of generating more than $750 in revenue for the door-to-door …

, Chapter: 13 -Problem: 12 >> The Van Horne Company manufactures air conditioners that are sold to five large retail customers around the country. Van Horne is evaluating its manufacturing and logistics strategy to ensure that it is operating as efficiently as possible. The company can produce air conditioners at six plants and stock these units in any of four different warehouses. The cost of manufacturing and shipping a unit
Answer Preview: You can run the solver in Evolutionary Solving method as well if you are not gett…

, Chapter: 11 -Problem: 11 >> Coordinating Advertising and Production. The Hawley Lighting Company manufactures four families of household lighting at its factory. The product families are table lamps, floor lamps, ceiling fixtures, and pendant lamps. The table below shows the average material costs for each of the products.Each product is made in one of two production processes by purchasing components, assembling and testing
Answer Preview: Solution: a. The optimal output plan for the company is to produce 20,000 ceil…

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, Chapter: 2 -Problem: 14 >> The relationship between the effectiveness of a new drug and the amount spent on R&D.
Answer Preview: For pharmaceutical companies, the golden rule of dr…

, Chapter: 5 -Problem: 7 >> The database Wine Quality.xlsx** contains data on the chemical properties of nearly 5,000 wines. It also has a quality score for each wine that is based on the opinions of experts. The goal is to create a Multiple Linear Regression model which predicts the quality score.In each of the following exercises, the goal is to develop a classification or prediction model for the given situation and data.
Answer Preview: Certainly, I can guide you through the process of developing a Multiple Linear Regression model to predict the quality score of wines using the "Wine …

, Chapter: 5 -Problem: 3 >> The database Bank Marketing.xlsx** contains information on the results of a direct marketing campaign by a Portuguese bank. The purpose of the campaign was to enroll customers in a bank term deposit account. The data include demographic information (e.g., marital status) as well as financial information (e.g., size of balance). The goal is to create a Naïve Bayes model to determine which customers
Answer Preview: Certainly, here's a guide on how to develop a Nave Bayes model to determine which customers will enroll in a bank term deposit account using the "Bank …

, Chapter: 7 -Problem: 4 >> The database Population.xlsx contains data on the populations of the 50 states from 1990 to 1999. For each of the following requirements, create a separate worksheet and extract the data from the original database. a. Sort the states by population in 1999, from highest to lowest. b. Were the 10 states with the highest population the same in 1999 as in 1990? c. Which state had the largest percentag
Answer Preview: a. State Population in 1999 (xlsx, 150 KB) Population B2B, Population B2C and Population C2B were ig…

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, Chapter: 4 -Problem: 7 >> The database German Credit.xlsx** contains data on prior applicants for credit, including whether they proved to have good or bad credit.a. How many records are in this database? b. How many fi elds are in this database? c. Is the field HISTORY nominal or ordinal? d. Is the field PRESENT_RESIDENT nominal or ordinal? e. How m any records are male, divorced, and unskilled resident? f. Which record n
Answer Preview: To provide answers to your questions, I would need access to the actual "German Credit xlsx" database or a detailed description of its structure and c…

, Chapter: 7 -Problem: 10 >> The number of staff personnel needed to handle patients at a medical center is determined by the mean time that patients must wait before being attended to by a physician. For a random sample of 100 previously recorded emergencies, the sample mean waiting time was 72 minutes, with a standard deviation of 28 minutes. a. What is a 50 percent confidence interval for the actual mean waiting time? b. W
Answer Preview: Calculation and Explanation. a. Confidence interval = Sample mean z-score x Standard devi…

, Chapter: 5 -Problem: 12 >> The database Voting Records.xlsx** contains data on the voting records for 435 members of the U.S. House of Representatives on 16 important pieces of legislation. The goal is to create a Neural Network model to classify members by party (Republican or Democrat).In each of the following exercises, the goal is to develop a classification or prediction model for the given situation and data. Follow t
Answer Preview: It seems like you're requesting a step-by-step approach to developing a classification or prediction model for the given dataset, Voting Records xlsx, …

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, Chapter: 9 -Problem: 8 >> A small firm buys and sells wheat. They own a warehouse with a capacity of 10,000 bushels, and as of late August, there will be 2,000 bushels in the warehouse. Wheat is delivered to the warehouse during the first week of the month, and it is sold and shipped around the middle of the month. All transactions are on a cash basis because the season is short, and the firm expects to have $20,000 in its
Answer Preview: To determine the buy-and-sell schedule that will produce the maximum profit for the firm, we need to analyze the market prices and the firm's current …

, Chapter: 5 -Problem: 5 >> The database Boston Housing.xlsx** contains information on 506 census tracts around the city of Boston. The data include housing-related information (e.g., average rooms per dwelling) as well as demographic information (e.g., per capital crime rate ). The goal is to create a Classification Tree model to predict which census tracts have a median home price above $30,000.In each of the following exe
Answer Preview: Certainly, here's a guide on how to develop a Classification Tree model to predict whether census tracts have a median home price above $30,000 using …

, Chapter: 5 -Problem: 10 >> The database German Credit.xlsx** contains information on the credit risk of 1,000 customers. The data include demographic information (e.g., gender) and financial information (e.g., savings account balance). The goal is to create a Logistic Regression model to classify customers by credit risk.In each of the following exercises, the goal is to develop a classification or prediction model for the
Answer Preview: Certainly, I can provide you with a general outline of the steps to develop a Logistic Regression model for classifying customers by credit risk using …

, Chapter: 2 -Problem: 15 >> The relationship between the cost of manufacturing a product and the cumulative quantity produced.
Answer Preview: This relationship is often seen in the development of a…

, Chapter: 13 -Problem: 4 >> Perry Enterprises is considering a number of investment possibilities. Specifically, each investment under consideration will draw on the capital account during each of its first three years, but in the long run, each is predicted to achieve a positive net present value (NPV). Listed below are the investment alternatives, their net present values, and their capital requirements, and all figures ar
Answer Preview: Solution: a. If all investments are permitted, the answer is $6 2 …

, Chapter: 8 -Problem: 5 >> The Energy Conservation Committee at National Electronics Company is trying to understand energy use at their plant. As a first step, the committee wants to build a model that will predict monthly energy use as a function of production volumes (Production), daily outside temperature (Temperature), and number of workdays (Days). The following table summarizes the data they have been able to collect
Answer Preview: Answer a) Test for significance of regression in case of multiple linear regression is carried out using Analysis of Variance. The test is used to che…

, Chapter: 7 -Problem: 5 >> The database Executives.xlsx contains salary and company data on 100 executives. For each of the following requirements, create a separate worksheet and extract the data from the original database. a. Among the top five executives in terms of Salary, how many work in the oil industry? b. What is the total compensation (salary, bonus, and other) for each of the executives who rank in the top 10 on
Answer Preview: Calculation and Explanation. a. Oil industry = 1 Other industrie…

, Chapter: 13 -Problem: 8 >> A pharmaceutical company has a new drug under development and would like to know how much profit it might expect to make. The drug has to be tested to pass FDA approval. One hundred subjects will be tested and the company estimates that the probability that each subject will pass the test is 25 percent. The FDA will approve the drug if at least 20 out of the 100 subjects pass. Future R&D costs wil
Answer Preview: First, let's calculate the different components that contribute to the profit: Probability of a subject passing the test: P(pass) = 0 25 Number of subjects passing out of 100: X ~ Binomial(100, 0 25) …

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, Chapter: 7 -Problem: 1 >> The database Dish.xlsx contains a transaction history describing more than 4,000 purchases of detergent at a number of stores in a grocery chain over a period of several weeks. a. Compile a pivot table that gives a tabulation of sales (in cases) by brand (Dove, Sunlight, and so on). b. Compile a pivot table that gives a tabulation of sales broken down by brand and by week. c. Compile a pivot table
Answer Preview: a. [D] Total sales in cases by brand (Sunlight 32,000; Dove 18,…

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, Chapter: 13 -Problem: 3 >> A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 100 homes. Consultants have estimated that they should expect to find someone home 80 percent of the time. When someone is home, 65 percent of the time it is a female. Thirty percent of females make a purchase, and when they do so the dollar value of their purchase
Answer Preview: Let's break down the problem step by step: a. What is the total amount they can expect to generate in revenues from these 100 visits? First, let's cal…

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, Chapter: 5 -Problem: 11 >> The database Credit Approval.xlsx** contains information on a large number of individuals who have applied for credit cards, including whether they were approved. The data include demographic data (e.g., age) and financial data (e.g., income). The goal is to create a Neural Network model to classify applicants by credit worthiness.In each of the following exercises, the goal is to develop a classi
Answer Preview: Certainly, here's a step-by-step guide to developing a Neural Network model for classifying credit card applicants by creditworthiness using the "Cred…

, Chapter: 7 -Problem: 2 >> The database Tissue.xlsx contains a transaction history describing more than 3,700 purchases of facial tissues at a number of stores in a grocery chain over a period of several weeks. a. Compile a pivot table that gives a tabulation of the number of units sold by brand. b. Compile a pivot table that gives a tabulation of sales units broken down by brand and by week. c. Compile a pivot table that g
Answer Preview: a. Units sold by brand = W2 S2, where W is the number of units sold by brand and S is the …

, Chapter: 7 -Problem: 8 >> Five years ago, an automobile manufacturer started offering an extended warranty to buyers of its sport-utility vehicle. The extended warranty covered defects occurring after the initial three-year warranty expired. Of the 10,000 people who bought the sport-utility vehicle in the first year of the program, 15 percent purchased the extended warranty. In the Warranty Department, you have recently re
Answer Preview: a. The population mean one year extended-warranty expenditure per automobile is Then the standard er…

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, Chapter: 10 -Problem: 4 >> Curve Fitting with Constraints. A bank’s economist has been interested in developing a production function for the bank. The model recognizes three explanatory variables, which are measures of resources available to the bank. These are Labor Hours, Operating Expenses, and Capital Expenses. The response variable, which measures output activity, is a weighted average of the transactions processed by
Answer Preview: Answer: a. The best-fitting values of a0, a1, a2, and a3 can be determined by min…

, Chapter: 7 -Problem: 10 >> Many labor-intensive production operations experience a learning curve effect. The learning curve specifies that the cost to produce a unit is a function of the unit number; that is, as production volume increases, the cost to produce each unit drops. One form of the learning curve is as follows: Ci = a(i)b where Ci is the cost of unit i, a is called the first unit cost, and b is the learning “slo
Answer Preview: Let's address each part of the production-planning problem step by step: a. Optimal Batch Sizes with …

, Chapter: 7 -Problem: 7 >> Your company is changing its name, and you’ve been asked to study the impact of a name change announcement on the subsequent return generated by the firm’s stock. In a sample of 400 companies that have made such announcements, you discover that over the 28-day period after a name change announcement, the average company experiences a 17 percent increase in price, with a standard deviation of 8 per
Answer Preview: Answer and thorough Explanation. a. Confidence interval = Sample mean z-score x Stand…

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, Chapter: 8 -Problem: 1 >> A food products company believes that storing frozen foods at low temperatures for several weeks might cause a noticeable weight loss in the product. Some data were collected to test this belief, as summarized in the table below:a. Explore the possibility of a linear relation between percentage weight loss and weeks in storage. Does there seem to be a strong linear relationship, based on a scatter
Answer Preview: Answer: a. Based on the scatter plot and the correlation, there does seem to b…

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, Chapter: 10 -Problem: 10 >> The Spencer Shoe Company manufacturers a line of inexpensive shoes in one plant in Pontiac and distributes to five main distribution centers (Milwaukee, Dayton, Cincinnati, Buffalo, and Atlanta) from which the shoes are shipped to retail shoe stores. Distribution costs include freight, handling, and warehousing costs. To meet increased demand, the company has decided to build at least one new plan
Answer Preview: a. Assume that the Pontiac plant has no resale value and must remain open. What are the plant locati…

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, The database German Credit.xlsx** contains information on the credit risk of 1,000 customers. The data include demographic information (e.g., gender) and financial information (e.g., savings account balance). The goal is to create a Logistic Regression model to classify customers by credit risk.In each of the following exercises, the goal is to develop a classification or prediction model for the
Answer Preview: Certainly, I can provide you with a step-by-step guide on how to develop a Logistic Regression model for classifying customers by credit risk using th…

, Chapter: 5 -Problem: 1 >> The database Low Birth Weight.xlsx* consists of data on 189 women, 59 of whom had low-birth-weight babies. The data provided include basic demographic information (e.g., age of mother) as well as detailed information on the mother’s behavior prior to the birth (e.g., smoking status). The goal is to create a k-Nearest Neighbor model to classify births as low risk.In each of the following exercises,
Answer Preview: Examine the Data Descriptions and Explore the Data: Start by looking at the data descriptions or data dictionary if available to understand the meanin…

, Chapter: 17 -Problem: 10 >> A high-volume call center must determine how many customer service representatives (CSRs) to schedule each day of the week to cover the call volume. CSRs work a five-day week with two days off but can start their week on any day. For example, CSRs who start their week on Wednesday work Wednesday through Sunday with Monday and Tuesday off. Average call volumes (in units of CSRs) are given in the fo
Answer Preview: Solution: a. The optimal number of CSRs (using the variable-cost …

, Chapter: 7 -Problem: 12 >> An engineer working on the auto assembly line is preparing to estimate the mean time required to install a dashboard. Assuming a required standard deviation of 10 seconds in the estimated mean, determine the sample size under the following conditions: a. The desired confidence level of being in error by no more than one second (in either direction) is 0.99. b. The desired confidence level is 0.95
Answer Preview: a. For a desired confidence level of 0 99 and 1 sta…

, Chapter: 8 -Problem: 6 >> The National Transportation Safety Board collects data by state (including the District of Columbia) on traffic fatalities. Part of this data is shown in the following table, along with potentially related factors including population, number of licensed drivers, number of registered vehicles, and total number of vehicle miles driven. You have been asked to develop a model to help explain the fact
Answer Preview: Solution: a. The results entails one regression equation: log(Fatalities) = 0 116…

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, Chapter: 8 -Problem: 7 >> A commission on state parks is interested in identifying the factors that determine park revenues. Data are available at the state level on total revenues, acreage, number of day visitors, number of overnight visitors, and operating expenses. A portion of this data is displayed here; the entire data set is available in the file Parks.xlsx.a. Build a linear model to predict total revenues based on
Answer Preview: Answer: a. To build a linear model to predict total revenues based on the four potential explanatory …

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, Chapter: 8 -Problem: 2 >> A toy company has been marketing souvenir toys in conjunction with various professional sports teams in a number of cities. Over the past few years, this experience has provided some data on the effect of advertising on sales revenues because the advertising expenditures have tended to be different in each case. Although the lengths of advertising campaigns vary, the vast majority of the sales occ
Answer Preview: a. I can say that the linear model provides a good fit as seen from the plot of expendit…

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, Chapter: 5 -Problem: 6 >> The database Automobile Losses.xlsx** contains information on the average loss payment per insured year for a number of makes and models of cars. It also contains data on the physical characteristics of the vehicles (e.g., weight) and the price. The goal is to create a Prediction Tree model to predict the loss payment on a vehicle.In each of the following exercises, the goal is to develop a classi
Answer Preview: Here are the steps involved in creating a Prediction Tree model to predict the loss payment on a vehicle: Examine the data descriptions and explore th…

, Chapter: 9 -Problem: 9 >> Your uncle has $90,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial adviser, he has been offered four types of fixed income investments, labeled as investments A, B, C, and D.Investments A and B are available at the beginning of each of the next five years (call them years 1 to 5). Each dollar i
Answer Preview: Let's analyze the investment options and devise an investment plan for your uncle that maximizes the …

, Chapter: 8 -Problem: 8 >> Cost-of-living indices are often used to measure the desirability of living in a particular geographical area. The data in the following table give a composite index and six component indices for several urban areas in the United States. a. Build a linear model to predict the composite index based on the component indices. Evaluate the model in terms of overall goodness-of-fit. Evaluate the result
Answer Preview: Solution: a. The linear model for this data is Using the Compute [Fit] command in the Regression/OLS …

, Chapter: 7 -Problem: 3 >> The database Applicants.xlsx contains a description of an MBA applicant pool for an unspecified year in the 1990s. For each of the following requirements, create a separate worksheet and extract the data from the original database. a. Among enrolling students, what is the average GMAT score? What is the average in the applicant pool as a whole? b. How many in the applicant pool represented Financi
Answer Preview: a. The average GMAT score = (23 + 67) / 2 = 56 The average in th…

, Chapter: 8 -Problem: 3 >> A marketing manager for a computer manufacturer was interested in whether consumers could evaluate the price of laptops and desktops with different features. An Weeks experiment was devised in which a set of consumers were randomly shown one computer from an inventory and were asked to guess its price. Four computers were used in the study, with list prices of $1,800; $2,500; $3,000; and $4,500. T
Answer Preview: Solution: a. I can say that there seems to be a linear relationship between customers guesse…

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, Chapter: 7 -Problem: 11 >> Oxbridge University is contemplating a policy under which they would pay employees to not bring their vehicles to campus. Instead of paying an annual fee for on-campus parking, employees would receive a rebate from the university, provided that they found alternative means of getting back and forth to work. Since this idea is unusual, Oxbridge University is contemplating a policy under which they
Answer Preview: a. The estimated proportion that will sign up = 5/40 = 0 125, and the estimated …

, Chapter: 11 -Problem: 14 >> Cargo Loading. You are in charge of loading cargo ships for International Cargo Company (ICC) at a major East Coast port. You have been asked to prepare a loading plan for an ICC freighter bound for Africa. An agricultural commodities dealer would like to transport the following products aboard this ship:You can elect to load any or all of the available commodities. However, the ship has three car
Answer Preview: Solution: a. It is given that the maximum profit from this …

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, Chapter: 7 -Problem: 9 >> The Luxor Computer Company plans to introduce a pyramid-shaped desktop computer. The company is interested in the proportion of prospective customers who find the unusual shape a positive selling point. In a random sample of 350 potential customers, 203 of the respondents indicated that the shape was a positive selling point. a. What is an estimate of the proportion of prospective customers who fi
Answer Preview: a. An estimate of the proportion of prospective customers who find the unusual shape a po…

, Chapter: 7 -Problem: 6 >> The database Applicants.xlsx contains a description of an MBA applicant pool for an unspecified year in the 1990s. For each of the following requirements, create a separate worksheet and extract the data from the original database. a. What percentage of the applicants were male? b. How old was the youngest male applicant? c. What was the GMAT score of the female with the highest score? d. How many
Answer Preview: a. Percentage: 97 76% b. School age…

, Chapter: 11 -Problem: 8 >> Leasing Warehouse Space. Cox Cable Company needs to lease warehouse storage space for five months at the start of the year. Cox knows how much space will be required in each month, and the company can purchase a variety of lease contracts to meet these needs. For example, Cox can purchase one-month leases in each month from January to May. The company can also purchase two-month leases in January
Answer Preview: Solution: a. By rearranging the fifteen leases in the table, …

, Chapter: 8 -Problem: 4 >> The Center for Disease Control has collected the following data on cigarette advertising and brand preferences among adolescents and adults.a. Explore the possibility of a linear relation between advertising and brand preference for adults and for adolescents separately. Do there seem to be strong linear relationships, based on a scatter plot and the correlation? b. Build linear models to represen
Answer Preview: Answer: a. To explore the possibility of a linear relation between advertising and brand preference …

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, Chapter: 15 -Problem: 6 >> TCS Corporation has recently decided to manufacture a product in its own facilities rather than outsource to Asian manufacturers. Its new plant will last about ten years. TCS is considering two options: build a large plant now that will have sufficient capacity to handle demand into the foreseeable future, or build a small plant that can be expanded two years later, after demand is better known. T
Answer Preview: To determine the optimal decision, TCS would need to know the expect…

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, Chapter: 16 -Problem: 10 >> A new product will sell for $8. The company expects to sell around 900,000 units. (Use a normal distribution with a mean of 900,000 and a standard deviation of 300,000.) Fixed costs are normally distributed with a mean of $700,000 and a standard deviation of $50,000. Unit variable costs are also normally distributed with a mean of $3 and a standard deviation of $0.25. Selling expenses are lognorma
Answer Preview: (a) The expected value of profit for the product is $7 1 million. The expected value of profit is ca…

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, Chapter: 2 -Problem: 1 >> Explore the mess by answering the following questions: (a) What do we know? (b) What can we assume? (c) What could the results look like? (d) What information can be brought to bear? (e) What can we ask the client? (f) Are there any similar situations or problems?
Answer Preview: (a) We know that the client, who is applying to the Central Intelligence Agency (CIA) and must pass …

, Chapter: 12 -Problem: 5 >> Copy Makers Inc. (CMI) has just received a credit request from a new customer who wants to purchase a copying machine. As input to its decision of whether to grant credit, CMI has made the following estimates and assumptions:• If CMI denies the customer credit, there is a 20 percent chance that the customer will buy the copying machine with cash anyway. • If CMI grants credit, there is a 70 percen
Answer Preview: To determine the complete, optimal decision strategy for Copy Makers Inc. (CMI) and the optimal expected value, we can use decision analysis technique…

, Chapter: 2 -Problem: 17 >> The relationship between the probability the FDA will approve a given drug and the number of patients enrolled in the clinical trials of the drug.
Answer Preview: Answer and thorough Explanation. The FDA is more likely t…

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, Chapter: 2 -Problem: 10 >> The Red Cross provides about 40 percent of the replacement blood supply for the United States. The available donor base has been shrinking for years, and although increased advertising has kept Red Cross supplies adequate, the time is approaching when demand will outstrip supply. For many years, the Red Cross has refused to pay donors for blood, because to do so would ‘‘put the blood supply of the
Answer Preview: Answer 1. Influence Chart for …

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, Chapter: 5 -Problem: 4 >> The database Spambase.xlsx** contains detailed in for mation on the words used in a large number of emails. The emails are classified as Spam or Not Spam. The goal is to create a Naïve Bayes model to determine whether individual emails are spam or not.In each of the following exercises, the goal is to develop a classification or prediction model for the given situation and data. Follow these steps
Answer Preview: Certainly, here's a guide on how to develop a Nave Bayes model to determine whether individual emails are spam or not using the "Spambase xlsx" datase…

, Chapter: 16 -Problem: 11 >> Software System Evaluation. A new software system will cost $2 million initially and take around 2 years to install (the actual time to complete installation will be lognormally distributed with a mean of 2 years and a standard deviation of 0.5 years). Development costs each year will be normally distributed with a mean of $1 million and a standard deviation of $0.25 million. (Each year is an inde
Answer Preview: (a) $2,000,000 + $1,000,000 + $1,000,000 …

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16 Reviews for Management Science The Art of Modeling with Spreadsheets Textbook Questions And Answers