Due to the COVID-19 Pandemic, the HR Office is trying to choose who will be retained among the employees. The portfolio of each was given to the HR Director. For each employee, the HR Director gathers information by trying to verify the years in service, expertise, qualifications, performance evaluation, etc. but some doubt about who among the employees are qualified always remains when a decision to retain or not is to be made. What are the type I and II decision error costs? Which decision error is more likely to be discovered by her boss? How does this affect the HR Director’s decisions on employee retention?

Due to the COVID-19 Pandemic, the HR Office is trying to choose who will be retained among the employees. The portfolio of each was given to the HR Director. For each employee, the HR Director gathers information by trying to verify the years in service, expertise, qualifications, performance evaluation, etc. but some doubt about who among the employees are qualified always remains when a decision to retain or not is to be made. What are the type I and II decision error costs? Which decision error is more likely to be discovered by her boss? How does this affect the HR Director’s decisions on employee retention?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 41P: At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 =...

See similar textbooks

Similar questions

The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?
At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.
The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data are listed in the file P13_17.xlsx. a. Estimate a simple regression equation involving annual sales (the dependent variable) and the size of the population residing within 10 miles of the restaurant (the explanatory variable). Interpret R-square for this regression. b. Add another explanatory variableannual advertising expendituresto the regression equation in part a. Estimate and interpret this expanded equation. How does the R-square value for this multiple regression equation compare to that of the simple regression equation estimated in part a? Explain any difference between the two R-square values. How can you use the adjusted R-squares for a comparison of the two equations? c. Add one more explanatory variable to the multiple regression equation estimated in part b. In particular, estimate and interpret the coefficients of a multiple regression equation that includes the previous years advertising expenditure. How does the inclusion of this third explanatory variable affect the R-square, compared to the corresponding values for the equation of part b? Explain any changes in this value. What does the adjusted R-square for the new equation tell you?
Within the process in the "monitoring" section, we consider the indicators (choose the correct answer): a. clearly insufficient b. superfluous and interpretable c. the best tool for decision making
Jon is preparing a newsletter to his clients. As part of his newsletter, he reports their economic outlook for the coming year. He samples 85 of his clients, and they report that they expect to hire 7.8 new employees during the coming year. Last year all of his clients averaged 6.3 hires with a standard deviation of 4.0. Jon wants to know if the expected number of new hires has significantly increased at the 5% significance level. What are the null and alternate hypotheses?
The time to deliver packaged containers by a logistics company is found fromsamples of size 4. The mean and standard deviation of delivery times is estimated tobe 140 hours and 6 hours, respectively.(a) Find the 2 sigma and 3 sigma control limits for the average delivery time.(b) Explain a type I and type II error specifically in this context.(c) If the mean delivery time shifts to 145 hours, what is the probability of notdetecting this by the second sample after the shift?(d) What is the ARL? Explain
Lifang Wu owns an automated machine shop that makes precision auto parts. He has just compiled an input —output report for the grinding work center. Period 1 2 3 4 Total Planned input 90 90 95 95 Actual input 95 95 95 95 Deviation Planned output 85 85 85 85 Actual output 85 85 80 80 Deviation Initial backlog: 35 Part 2 For the given information related to "inputs," the values for deviation and total are: The deviation in period 2 = enter your response here units (enter your response as an integer, including a minus sign if necessary). Part 3 The deviation in period 4 = enter your response here units (enter your response as an integer, including a minus sign if…
Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. It is not appropriate to interpret b 0b0, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. B. The value of b 0b0 is the predicted overhead costs for 0 billable hours. C. It is not appropriate to interpret b 0b0, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. D. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b 0b0. E. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. F. For each increase of 1 unit in…
Cost Estimation; High-Low and Regression Methods The Mac Davis Company specializesin the purchase, renovation, and resale of older homes. Mac employs several carpenters and paintersto do the work for him. It is essential for him to have accurate cost estimates so he can determinetotal renovation costs before he purchases a piece of property. If estimated renovation costs plus thepurchase price of a house are higher than the house’s estimated resale value, it is not a worthwhileinvestment.Mac has been using the home’s interior square feet for his exterior paint cost estimations. Recentlyhe decided to include the number of external openings—the total number of doors and windows ina house—as a cost driver. Their cost is significant because they require time-consuming preparatorywork and careful brushwork. The rest of the house usually is painted either by rollers or spray guns,which are relatively efficient ways to apply paint to a large area. Mac has kept careful records of theseexterior…
Rajan wanted a radio from Jacky's. It appears that Rajan is particularly interested in purchasing a Radio from the inexpensive retailer's sales manager for consumer electronics. He tells Jacky, the salesperson at the inexpensive store where he thinks he'll get the best deal, that his old radio died and he wants to listen to his favourite tunes. He wants a replacement radio as quickly as possible. In three and a half weeks, Rajan's favourite model will be 10% off.He suspects Rajan won't wait and will find another job. Jacky will earn less on the lowered price. He thinks that telling Rajan of the sale makes little sense.When Jacky tells Rajan that the radio set he wants is no longer available and won't be for another week, Rajan is enraged. Fearing losing the business, Jacky begs his sales manager, Michelle, to speed up delivery. Michelle says it's impossible and suggests Jacky tell Rajan the store can get the set in 24 hours and sell him the demo model. Michelle says the sample is new…
Movieflix, an online movie streaming service that offers a wide variety of award-winning TV shows, movies, animes, and documentaries, would like to determine the mathematical trend of memberships in order to project future needs. Year 2013 2014 2015 2016 2017 2018 2019 2020 2021Membership (000s) 17 16 16 21 20 20 23 25 24 1. Forecast 2023 membership.
Overhead Costs Billable Hours 395000 2000 440000 3000 460000 4000 513000 5000 580000 6000 605000 7000 Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=enter your response hereplus+left parenthesis nothing right parenthesisenter your response heretimes×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.)