Problem 13-09 (Algorithmic)

Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company’s new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars):

1. What is the decision to be made, what is the chance event, and what is the consequence for this problem?
   
   The input in the box below will not be graded, but may be reviewed and considered by your instructor.
   
   
   
   How many decision alternatives are there?
   
   Number of decision alternatives =
   
   How many outcomes are there for the chance event?
   
   Number of outcomes =
   
2. If nothing is known about the probabilities of the chance outcomes, what is the recommended decision using the optimistic, conservative and minimax regret approaches?
   

   Optimistic approach
   Conservative approach
   Minimax regret approach

3. Suppose that management of Myrtle Air Express believes that the probability of strong demand is 0.7 and the probability of weak demand is 0.3. Use the expected value approach to determine an optimal decision.
   
   Optimal Decision :
   
4. Suppose that the probability of strong demand is 0.8 and the probability of weak demand is 0.2. What is the optimal decision using the expected value approach?
   
   Optimal Decision :
   
5. Use graphical sensitivity analysis to determine the range of demand probabilities for which each of the decision alternatives has the largest expected value. If required, round your answer to four decimal places.
   
   is the best choice if probability of strong demand is less than or equal to .

Problem 13-09 (Algorithmic)

Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company’s new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars):

1. What is the decision to be made, what is the chance event, and what is the consequence for this problem?
   
   The input in the box below will not be graded, but may be reviewed and considered by your instructor.
   
   
   
   How many decision alternatives are there?
   
   Number of decision alternatives =
   
   How many outcomes are there for the chance event?
   
   Number of outcomes =
   
2. If nothing is known about the probabilities of the chance outcomes, what is the recommended decision using the optimistic, conservative and minimax regret approaches?
   

   Optimistic approach
   Conservative approach
   Minimax regret approach

3. Suppose that management of Myrtle Air Express believes that the probability of strong demand is 0.7 and the probability of weak demand is 0.3. Use the expected value approach to determine an optimal decision.
   
   Optimal Decision :  
   
4. Suppose that the probability of strong demand is 0.8 and the probability of weak demand is 0.2. What is the optimal decision using the expected value approach?
   
   Optimal Decision :  
   
5. Determine the range of demand probabilities for which each of the decision alternatives has the largest expected value. If required, round your answer to four decimal places.
   
     is the best choice if probability of strong demand is less than or equal to . For values of  greater than , the full price service is   choice.

Question 1. My student union poll included another question regarding the preference for different dog breeds. I find that there is a statistically significant association between preferred dog breeds and gender of the students. I calculate a Cramer's V test and get a result of 0.05. What conclusion would I make about this result?

A) The Cramer's V score disproves our statistical significant finding.

B) The result was statistically significant, but not substantively significant.

C) The Cramer's V value further proves that the result is significant.

Question 2. I decide to conduct another poll outside the student union, and I want to ensure that my poll will have a low probability of Type II error and will be able to detect a difference with a medium effect size. I run the following code:

pwr.chisq.test(w = 0.3, N=NULL, df = 20, sig.level = 0.05, power = 0.8)

I get the following output in R:

Chi squared power calculation

w = 0.3
N = 232.8977
df = 20
sig.level = 0.05
power = 0.8

What does this output tell me about how I need to design my next poll.

A) I need a sample size of 233 students to obtain a result with the power I desire to have in my analysis.

B) Since I set my sample size at 233 I will achieve a power of 0.8.

C) A sample size of 230 should be sufficient for my poll.

D) My new poll needs a power of 0.8 to have an effect size of 0.3.

Question 3. Which of the following reflects the substantive significance of a statistic?

A) effect size

B) p-value

C) beta

D) alpha

1. Compute a weighted moving average forecast for November. Use the following weights:
   0.5 for Oct., 0.3 for Sept., and 0.2 for August.
   1. 422.5
   2. 312.8
   3. 529.0
   4. 485.0
2. Compute an exponential smoothing forecast for November. Assume forecast for September is 425.5, and use a smoothing constant equal to 0.3.
   1. 485.0
   2. 379.5
   3. 433.4
   4. 459.6

The builder of a new movie theater is trying to decide how many screens she wants. Below are her estimate of the number of patrons the complex will attract each year depending on the number of screens available. Number of screens: Total number of patrons 1 50,000 2 95,000 3 135,000 4 170,000 5 195,000 The owner expects to net $2 per ticket sold. Construction costs are $1,000,000 per screen. The screen can always be resold for $1,000,000 at the end of the year. However, the builder has to borrow $1,000,000 per screen and pay the lender the prevailing interest rate.

a) What is the marginal product per screen? In other words how much revenue does each screen generate

b) How many screens will be built if the interest rate is 6%

c) How many screens will be built if the interest rate is 8.5%?

d) How many screens will be built if the interest rate is 12%

A stock's returns have the following distribution:

Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Stock's expected return:   %

Standard deviation:   %

Coefficient of variation:

Sharpe ratio:

Twelve men were placed on a weight-reducing diet. The changes in weight (Kg) exhibited by the men were as follows. Determine whether the diet is successful.

Data: -1.2, -1.4, -1.0, -0.4, -0.3, -0.8, 0.5, 0.1, -0.9, -1.8, 0.0, -2.1.

A shop operates 400 minutes every day. The shop manager wants an output of 300 units per day for the assembly line. Twelve tasks, with time and precedence requirements as shown in the following table.

Compute the efficiency (in terms of %) after balancing the assembly line.

*Round your answers to 3 decimal places in your calculation if necessary.

Two isolated concentric conducting spherical shells have radii R1=0.5 m and R2=1 m,

uniform charges q1=+2.0 μC and q2=+1 μC, and negligible thickness. Assume that V=0 at infinity.​

(a) What is the magnitude of the electric field at a radial distance of r=4 m?
(b) What is the magnitude of the electric field at a radial distance of r=0.7 m?
(c) What is the magnitude of the electric field at a radial distance of r=0.2 m?
(d) What is the potential at r=4 m?
(e) What is the potential at r=1 m?
(f) What is the potential at r=0.7 m?
(g) What is the potential at r=0.5 m?
(h) What is the potential at r=0.2 m?
(i) What is the potential at r=0 m?
(j) sketch E(r) and V(r).​

The physician orders Methergine 0.3 mg po twice a day for postpartum bleeding. The medication is supplied in 0.2-mg tablets. How many tablets will the nurse administer? _________tabs (express as a decimal if the answer includes fractions of a tablet