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- Question 2: Pricing & possible plant closureHandy Household Products Ltd is a multiproduct company with several manufacturing plants. The Fremantle plant manufactures and distributes two household cleaning and polishing compounds, standard and commercial, under the Clean & Bright label. The forecast operating results for the first six months of the current year, when 100000 boxes of each compound are expected to be manufactured and sold, are presented in the following statement:Clean&BrightCompounds,FremantleplantForecastresultsofoperationsforthesix-monthperiod endingJune30(in$’000s)SalesCost of goods soldGross profitSelling and administrative expenses: VariableFixed*Total selling and administrative expenses Profit (loss) before taxesStandard$20001600 $ 400$ 400 240 $ 640$ (240)Commercial$30001900 $1100$ 700$1060 $= 4 0Total$50003500 $1500$1100§QQ$1700 $(200)*The fixed selling and administrative expenses are allocated between the two products on the basis…a. The value of volume, V, of production above which site C is recommended= (?) Sport C150s (round your response up to the next whole number). b. The value of volume, V, of production above which site A is recommended= (?) Sport C150s (round your response up to the next whole number). c. Over what range of volume is site B optimal? ~hw2p2~a) What is the optimal solution (in words? b) An additional 4 hours of shaper time became available. Evaluate the effect? Explain- c) Two hours of Grinder time was lost. Evaluate the effect? d) An additional 20 units of component 3 was requested. Evaluate the effect e) The demand for component 2 decreased by 30 units. Evaluate the effect f) Suppose that the profit contribution of component 1 increases to $9.00.What is the new optimal solution? g) Suppose that the profit contribution of component 3 decrease by $2.00 . Would theoptimal solution change h) Is the problem degenerate? Explain! i) Are there alternative optima in this problem? Explain
- Consider pricing of options using the Black-Scholes formula. If you keep all parameters fixed and increase the value of K, what will happen to the value of C and P?1. Consumers at a ABC arrive at a rate of 45 per hr. There are three servers that can process customers at an average of 3 mins. (a) What is the average wait time? (b) What is the average number of customers waiting? (c) What is the average number of customers in the DMV? 2. A small entrepreneurial company is trying to decide between developing twodifferent products that they believe they can sell to two potential companies, one large andone small. If they develop Product A,they have a 50% chance of selling it to the largecompany with annual purchases of about 20,000 units.If the large company won't purchaseit, then they think they have an 80% chance of placing it with a smaller company, with salesof 15,000 units.On the other hand if they develop Product B, they feel they have a 40%chance of selling it to the large company, resulting in annual sales of about 17,000 units. If the large company doesn't buy it, they have a 50% chance of selling it to the small company with sales of…Q: A brand manager for ColPal Products must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of $25,000. The manager has decided that because television ads have been found to be much more effective than radio ads, at least 75% of the time should be allocated to television.Suppose that we have the following data: a) Identify the decision variables, objective function, and constraints in simple verbal expressions. b) Mathematically formulate a linear optimization model. Type of Ad Exposure/Minute Cost/Minute Radio 350 $400 TV 800 $2,000 Please solve in EXCEL by stating the decision variables, objective function and constraints. The objective function and constraints should be written in a…
- Q: A brand manager for ColPal Products must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of $25,000. The manager has decided that because television ads have been found to be much more effective than radio ads, at least 75% of the time should be allocated to television.Suppose that we have the following data: a) Identify the decision variables, objective function, and constraints in simple verbal expressions. b) Mathematically formulate a linear optimization model. Note: Please clearly state the decision variables, objective function and constraints. The objective function and constraints should be written as a mathematical model using inequality or equality formulas. This question is interested in…Question 2 Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $63, $95, and $135, respectively. The production requirements per unit are as follows: PLEASE ANSWER D to G . If there are two possible answers one will suffice. Where necessary a range analysis must be shown. a) The profit per unit for deluxe model was increased to 150 per unit. Evaluate the effect b) . Identify the range of optimality for each objective function coefficient (unit profit). Suppose the profit for the economy model is increased by $6 per unit, the profit for the standard model is decreased by $2 per unit, and the profit for the deluxe model is increased by $4 per unit. (use the 100% rule)What will be the new optimal solution be? c) If the number of fan motors available for production is increased by 100, evaluate the effect. d) What are the allowable values within the number of cooling coils can vary without…Solve ASAP Consider a firm with revenue given by R = 10e − e2 where e: working effort of a typical employee. Now, find out the effort level of the typical employee and the expected profit of the firm for each of following suggested payment schemes. Note that • the employee chooses its effort to maximize wage w minus effort e (assuming that each unit of e will have a cost of 1) • the firm makes profits R − w a) Payment Scheme A: { w = 2 for e ≥ 1 w = 0 for e ≤ 1 . b) Payment Scheme B: { w = R/2 for e ≥ 1 w = 0 for e ≤ 1
- A bookstore can obtain a certain novel from the publisher at a cost of $3 per book. The bookstore has been offering the novel at a price of $15 per copy and, at this price, hasbeen selling 200 copies a month. The bookstore is planning to lower its price to stimulatesales and estimates that for each $1 reduction in the price, 20 more books will be sold each month. At what price should the bookstore sell the novel to generate the greatest possible profitPHYSICAL EXERCISE A psych research group found that 25 participants who were in a program with physical exercise regimen after therapy showed 32% rate of symptom relapse from depression while the Journal of Health Psychology reported that those who were given only anti-depressants as maintenance showed 40% relapse. Can the psych research group conclude that physical exercise has a lower rate of symptom relapse ata 0.01? A. Given B. Problem C. Hypothesis D. Formula and Test Statistic E. Decision Basis Traditional Method p-value Method F. Statistical Decision Traditional Method p-value Method G. Contextual Decision the attached photos are reference. pls use that as a guide. the answers must be complete especially the solution thanks.Question two A researcher is proposing that exercise makes a person more energized as a result they require less sleep. He carries out a survey on the number of hours of exercise per week and the average hours of sleep needed per night in order to feel well rested. The results are shown on page 2 for the 8 participants. Average hours of sleep needed/night 4 5.2 2 3.4 8 10 1.5 6 Hours of exercise/week 8.6 8.1 9 8.5 7.4 6.8 9.4 7.7 Sketch a scatter plot for the data, is the relationship linear? What is the correlation between the two variables? Calculate the coefficient of determination and explain. . Explain the following steps involved in a chi-square test of independence: i) Identify the claim then state the null and alternative hypotheses (Ho and Ha) for this test. ii)Select the level of significance. iii) Calculate the test statistic. iv) Formulate the Decision Rule and Make a Decision. v) Interpret your decision in terms of the…