Question

In: Finance

Susan Winslow has two alternative routes to travel from her home in Olport to her office...

Susan Winslow has two alternative routes to travel from her home in Olport to her office in Lewisburg. She can travel on Freeway 5 to Freeway 57 or on Freeway 55 to Freeway 91. The time distributions are as follows:

Freeway 5

Freeway 57

Freeway 55

Freeway 91

Relative

Relative

Relative

Relative

Time

Frequency

Time

Frequency

Time

Frequency

Time

Frequency

5

0.30

4

0.10

6

0.20

3

0.30

6

0.20

5

0.20

7

0.20

4

0.35

7

0.40

6

0.35

8

0.40

5

0.20

8

0.10

7

0.20

9

0.20

6

0.15

8

0.15

Do a five-day simulation of each of the two combinations of routes using the random numbers below. Based on this simulation, which routes should Susan take if her objective is to minimize her total travel time?

Freeway 5

63

88

55

46

55

Freeway 57

59

09

57

87

07

Freeway 55

71

95

83

44

34

Freeway 91

51

79

09

67

15

Then do a 365-day simulation of each of the two combinations of routes using Microsoft Excel. Based on this simulation, are the routes Susan should take different from the above? If so, why?

Solutions

Expert Solution

Statement of Random No. Of Range
For Freeway 5
Time Frequency Cummulative Frequency Range
5 0.3 30 0-29
6 0.2 50 30-49
7 0.4 90 50-89
8 0.1 100 90-99
For Freeway 57
Time Frequency Cummulative Frequency Range
4 0.1 10 0-9
5 0.2 30 10-29
6 0.35 65 30-64
7 0.2 85 65-84
8 0.15 100 85-99
For Freeway 55
Time Frequency Cummulative Frequency Range
6 0.2 20 0-19
7 0.2 40 20-39
8 0.4 80 40-79
9 0.2 100 80-99
For Freeway 91
Time Frequency Cummulative Frequency Range
3 0.3 30 0-29
4 0.35 65 30-64
5 0.2 85 65-84
6 0.15 100 85-99
Statemant of Simulated Data
Day Freeway 5 Freeway 57 Freeway 55 Freeway 91 Minimum Time Rought
R.No Time R.No Time R.No Time R.No Time Freeway Time
1 63 7 59 6 71 8 51 4 from 91 4
2 88 7 9 4 95 9 79 5 From 57 4
3 55 7 57 6 83 9 9 3 From 91 3
4 46 6 87 8 44 8 67 5 From 91 5
5 55 7 7 4 34 7 15 3 From 91 3

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