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Answer the following questions based on the Tornado and Sensitivity graphs given below. Which input variables are the most and the least impactful variables? Please mention two for each case. How the objective function changes by changing the most impactful input variable?

Answer the following questions based on the Tornado and Sensitivity graphs given below. Which input variables are the most and the least impactful variables? Please mention two for each case. How the objective function changes by changing the most impactful input variable?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Answer the following questions based on the Tornado and Sensitivity graphs given below.

  1. Which input variables are the most and the least impactful variables? Please mention two for each case.
  2. How the objective function changes by changing the most impactful input variable?
Gross Sales (87) Fixed Costs (B15) Prob of Winning Case (86) Variable Costs (816) Prob(Mtg Process Works) (B5) Precision Tree Textbook Version For Academic Use Only Legal Fees (810) Interest Rate (B11) PI Stock Price (B12) $1,500,000 $2,000,000 $2,500,000 000'000'ES Expected Value $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000
Transcribed Image Text:Gross Sales (87) Fixed Costs (B15) Prob of Winning Case (86) Variable Costs (816) Prob(Mtg Process Works) (B5) Precision Tree Textbook Version For Academic Use Only Legal Fees (810) Interest Rate (B11) PI Stock Price (B12) $1,500,000 $2,000,000 $2,500,000 000'000'ES Expected Value $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000
Expected Value Expected Value $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $4,800,000 $4,600,000 $4,400,000 $4,200,000 $4,000,000 $3,800,000 $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $20,000,000 %St $25,000,000 Ⓡ Expected Value Node 'Decision' (825) With Variation of Gross Sales (B7) Precision Tree Textbook Version For Academic Use Only $30,000,000 $35,000,000 Gross Sales (87) $40,000,000 Expected Value of Node 'Decision' (825) With Variation of Prob of Winning Case (86) Precision Tree Textbook Version For Academic Use Only Prob of Winning Case (B6) $45,000,000 75%- 000'000'oss Expected Value Expect $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $3,556,001 $3,556,000 $3,556,000 $3,556,000 $3,556,000 $3,556,000 $3,555,999 $47 $1,000,000 $48 000'000'z$ Expected Value of Node 'Decision' (825) With Variation of Fixed Costs (B15) Precision Tree Textbook Version For Academic Use Only $3,000,000 $4,000,000 $5,000,000- Fixed Costs (815) Expected Value of Node 'Decision' (825) With Variation of PI Stock Price (B12) $6,000,000 PI Stock Price (B12) Precision Tree Textbook Version For Academic Use Only - ESS $7,000,000 554 $55 $8,000,000 $9,000,000 55
Transcribed Image Text:Expected Value Expected Value $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $4,800,000 $4,600,000 $4,400,000 $4,200,000 $4,000,000 $3,800,000 $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $20,000,000 %St $25,000,000 Ⓡ Expected Value Node 'Decision' (825) With Variation of Gross Sales (B7) Precision Tree Textbook Version For Academic Use Only $30,000,000 $35,000,000 Gross Sales (87) $40,000,000 Expected Value of Node 'Decision' (825) With Variation of Prob of Winning Case (86) Precision Tree Textbook Version For Academic Use Only Prob of Winning Case (B6) $45,000,000 75%- 000'000'oss Expected Value Expect $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $3,556,001 $3,556,000 $3,556,000 $3,556,000 $3,556,000 $3,556,000 $3,555,999 $47 $1,000,000 $48 000'000'z$ Expected Value of Node 'Decision' (825) With Variation of Fixed Costs (B15) Precision Tree Textbook Version For Academic Use Only $3,000,000 $4,000,000 $5,000,000- Fixed Costs (815) Expected Value of Node 'Decision' (825) With Variation of PI Stock Price (B12) $6,000,000 PI Stock Price (B12) Precision Tree Textbook Version For Academic Use Only - ESS $7,000,000 554 $55 $8,000,000 $9,000,000 55
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