The following problems have been adapted from Business Analytics by J. Evans 2nd Edition.Some numbers and details have been changed so please use the information provided within this file. Each group must complete all problems by the due date to receive full credit. Please designate one member of the group to post the final group answers under Assignments.
3. Suggest some metrics that a hotel might want to collect about their guests. How might these metrics be used with business analytics to support decisions at the hotel?
7. Identify each of the variables in the Excel file Weddings as categorical, ordinal, interval, or ratio and explain why.
11. Suppose that a manufacturer can produce a part for $7.00 with a fixed cost of $6,000. The manufacturer can contract with a supplier in Asia to purchase the part at a cost of $12.00, which includes transportation.
a. If the anticipated production volume is 1,800 units, compute the total cost of manufacturing and the total cost of outsourcing. What is the best decision?
b. Find the break-even volume and characterize the range of volumes for which it is more economical to produce or to outsource.
10. Four key marketing decision variables are price (P), advertising (A), transportation (T), and product quality (Q). Consumer demand (D) is influenced by these variables. The simplest model for describing demand in terms of these variables is
D = k – pP + aA + tT + qQ
where k, p, a, t, and q are positive constants.
a. How does a change in each variable affect demand?
b. How do the variables influence each other?
c. What limitations might this model have? Can you think of how this model might be made more realistic?
15. A manufacturer of mp3 players is preparing to set the price on a new model. Demand is thought to depend on the price and is represented by the model D = 2,000 – 3P
The accounting department estimates that the total costs can be represented by C = 5,000 + 2D
Develop a model for the total profit in terms of the price, P.