308 Chapter 11 CASE STUDYCase stUDYCollege and professional sports are economy boosters for their host cities. The stream of revenue to the local economy generated by excited fans comes from the sale of tickets, hotel room rentals, car rentals, restaurant meals served, gasoline sales, park-ing fees, and vendor sales. The sales become even greater when a team is winning.Cities such as Lincoln, Nebraska; Columbus, Ohio; Tallahassee, Florida; and Baton Rouge, Louisiana count on the revenue generated by sell-out crowds during the college football season. Stadiums that hold from 82,000 to 102,000 fans provide an eco-nomic windfall for the college com-munities where they are located.Some fans of professional sports teams, such as the Chicago Cubs and Green Bay Packers, are loyal no mat-ter how well their team is performing. These faithful fans provide a steady flow of revenue to the sports program and surrounding communities.College World Series Wars?Cities that host major sporting events understand the financial benefits. Omaha, Nebraska, appreciates the millions of dollars poured into the city during the annual College World Series. Zesto’s, a popular fast-food restaurant, has truckloads of food rolling in each day to meet the demands of customers from all over the United States.The event has been voted the Best Annual Local Event and ranks as the third-most important state tourist attraction, according to a survey conducted by Omaha Magazine. The revenue from this two-week event has attracted the attention of other cities, such as Oklahoma City, that would like the opportunity to host the event in the future. Economic experts estimate that the College World Series generates more than $40 million for the Omaha economy. It is no wonder that other cities would like to host thisevent.Omaha tore down Rosenblatt Stadium, the former home of the College World Series, to build the new $131-million TD Ameritrade Park Omaha that has 24,505 seats. Omaha must continue to demonstrate top-notch hospitality so that the College World Series event planners continue to choose Omaha as its host city.Think Critically

1. Why is it important for Omaha to continue hosting the College World Series? Consider both financial and nonfinancial benefits.

2. What are some of the greatest sources of revenue for cities that are home to popular college and professional sports teams?

3. How can hosting a major event like the College World Series help a city develop a national image? Explain your answer.

4. List ten good food items for ven-dors to sell at the College World Series

1.

Based on the following payoff table, answer the following:

The maximin strategy is:

Group of answer choices

A) Buy.

B) Rent.

C) Lease.

D) High.

E) Low.

2.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

How many demand nodes are present in this problem?

Group of answer choices

A) 1

B) 2

C) 3

D) 4

E) 5

3.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

How many arcs will the network have?

Group of answer choices

A) 3

B) 4

C) 7

D) 12

E) 15

4.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

Note: This question requires Solver.

Formulate the problem in Solver and find the optimal solution. What is the optimal quantity to ship from Factory A to Customer 2?

Group of answer choices

A) 25 units

B) 50 units

C) 75 units

D) 100 units

E) 125 units

5.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

Which type of network optimization problem is used to solve this problem?

Group of answer choices

A) Maximum-Cost Flow problem

B) Minimum-Cost Flow problem

C) Maximum Flow Problem

D) Minimum Flow Problem

E) Shortest Path Problem

REGRESSION. The length of a species of fish is to be represented as a function of the age (measured in days) and water temperature (degrees Celsius). The fish are kept in tanks at 25, 27, 29 and 31 degrees Celsius. After birth, a test specimen is chosen at random every 14 days and its length measured. The dataset is presented below. What is the estimated regression equation?

Part 2

1.       REGRESSION. Which variable is the response variable?

Part 3

1.       REGRESSION. Is there evidence of collinearity between the independent variables?

Part 4

1.       REGRESSION. What proportion of the variation in the response variable is explained by the regression?

Part 5

1.       REGRESSION. The F statistic indicates that:

Part 6

1.       REGRESSION. The t-test of significance indicates that:

Part 7

1.       REGRESSION. The t-test of significance indicates that (same question but choose the correct answer):

Part 8

1.       REGRESSION. Assuming you ran the regression correctly, plot the residuals (against Y-hat). The plot shows that:

Part 9

1.       REGRESSION. Which of the following types of transformation may be appropriate given the shape of the residual plot?

Part 10

1.       REGRESSION. This type of dataset is best described as a ____ and a residual problem common with this type of data is ___

If x1 and x2 are the factors of production of a typical firm, output price is p, price of x1 and x2 are w1 and w2, respectively and the firm’s production function is:

           f (x1, x2) = x1^3 x2^3

i. Write up firm’s short run and long run profit maximization problem. Show firm’s short run profit maximization graphically please.

ii. Using the information above can you write the cost minimization problem for this firm if the firm decides to produce y1 level of output? Please show graphically how the firm minimizes its costs. What is the alternative method we can use to find the optimal quantity of x1 and x2 to solve the cost minimization problem for the firm? Explain.

iii. If the firm’s factor demand functions for x1 and x2 are as follows:

   x1= p ^3/ (27 w1^2 w2)

   x2= p ^3/ (27 w1 w2^2)

a. How the optimal quantity of each input changes when price of input changes?

b. How the optimal quantity of one input changes when price of other input changes?

c. How the optimal quantity of each input changes when price of that input changes?

Alumni donations are an important source of revenue for college and universities. If administrators could determine the factors that could lead to increases in the percentage of alumni who make a donation, they might be able to implement policies that could lead to increased revenues. Research shows that students who are more satisfied with their contact with teachers are more likely to graduate. As a result, one might suspect that smaller class sizes and lower student-faculty ratios might lead to a higher percentage of satisfied graduates, which in turn might lead to increases in the percentage of alumni who make a donation. Table 15.13 shows data for 48 national universities (America’s Best Colleges, Year 2000 Edition). The column labeled Graduation Rate is the percentage of students who initially enrolled at the university and graduated. The column labeled % of Classes Under 20 shows the percentage of classes offered with fewer than 20 students. The column labeled Student-Faculty Ratio is the number of students enrolled divided by the total number of faculty. Finally, the column labeled alumni Giving Rate is the percentage of alumni that made a donation to the university.

Chi-Square Test of Goodness of Fit. FOR THIS AND THE NEXT PART. The historical market shares of 4 firms are shown below. Also shown is the number of customers who, in a recent survey, indicated which firm they patronize. Note that the total number of customers in the survey is 200.

2.       In order to test whether the market shares have changed - in light the recent survey results - the following null hypothesis is defined for each firm:

3.       H₀: p1 = 0.40, p2 = 0.32, p3 = 0.24, p4 = 0.04

4.       Calculate the chi-square statistic for this study. Note: to do this, you should first calculate the "expected number" of customers for each firm based on the historical market share and the surveyed number of 200 customers.

PART 2

1.       Chi-Square Test of Goodness of Fit. CONTINUING FROM THE PRECEDING. What is the critical value of the test statistic? What can we conclude from the result?

You are a manager at a retail pharmacy outlet called One Pharmacy. Your store is in a very socially and culturally diverse suburb. Sometimes your staff members complain that the customers they serve are rude, unreasonable or difficult to understand. You realise your customer service systems may need to be reviewed and updated to best support your staff in serving the needs of your customers

You are a manager at a retail pharmacy outlet called One Pharmacy. Your store is in a very socially and culturally diverse suburb. Sometimes your staff members complain that the customers they serve are rude, unreasonable or difficult to understand. You realise your customer service systems may need to be reviewed and updated to best support your staff in serving the needs of your customers

An employee of a small software company in Minneapolis bikes to work during the summer months. He can travel to work using one of three routes and wonders whether the average commute times (in minutes) differ between the three routes. He obtains the following data after traveling each route for one week.

a-1. Construct an ANOVA table. (Round intermediate calculations to at least 4 decimal places. Round "SS", "MS", "p-value" to 4 decimal places and "F" to 3 decimal places.)

ANOVA
Source of Variation   SS   df   MS   F   p-value
Between Groups                  
Within Groups                  

a-2. At the 1% significance level, do the average commute times differ between the three routes. Assume that commute times are normally distributed.

• Yes since the p-value is less than significance level.
• No  since the p-value is less than significance level.
• No  since the p-value is not less than significance level.
• Yes  since the p-value is not less than significance level.

b. Use Tukey’s HSD method at the 1% significance level to determine which routes' average times differ. (You may find it useful to reference the q table). (If the exact value for n_T − c is not found in the table, use the average of corresponding upper & lower studentized range values. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

Population Mean Difference   Confidence Interval   Do the average times differ?
μRoute 1 − μRoute 2 [       ,       ]  
μRoute 1 − μRoute 3 [       ,       ]  
μRoute 2 − μRoute 3 [       ,       ]  

What is the NPV of the project? Project life: 3 years Equipment: Cost: $18,000 Economic life: 3 years Salvage value: $4,000 Initial investment in net working capital: $2,000 Revenue: $13,000 in year 1, with a nominal growth rate of 5% per year Fixed cost: $3,000 in year 1 Variable cost: 30% of revenue Corporate tax rate (T): 40% WACC for the project: 10% This project does not create incidental effect.