Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows:MonthPrice Per ChipPrice Per Chip$1.90MonthJulyJanuary$1.80February$1.61August$1.83March$1.60September$1.60April$1.85October$1.57May$1.90November$1.62June$1.95December$1.75This exercise contains only part d.With a = 0.1 and the initial forecast for October of $1.83, using exponential smoothing, the forecast for periods 11 and 12 is (round your responses to two decimal places):MonthOct Nov DecForecast $1.83

Forecasting is a technique used to predict future outcomes on the basis of past data. In businesses…

Answered: With a = 0.1 and the initial forecast…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?
Trent Berton is in charge of marketing for the family business, Berton's Burgers. Todd is in charge of all operations for the stores. While Trent is concerned with maintaining his father's legacy, Todd is concerned with quick food turnover and increased gross margins. Todd has alienated many of the employees that have worked at Berton's for years because he has cut corners on quality and health measures at each location. In 2009, Todd found a low-cost food service provider that would sell Berton's meat and vegetable products at a dramatically discounted rate from what it was currently paying. Trent and Todd had a big fight about it because Trent wanted to continue with the quality food provider Berton's had used for over 30 years. Todd negotiated a new contract anyway. Last week, the local newspaper ran an expose article reporting that Berton's Burgers served subpar meat that was made with more animal by-products and fillers than actual beef. This week, people are picketing the…
Due to inflation in Australia in December 2019, the price for petrol increased from AUD1.35 to AUD 1.45. This caused petrol consumption to decrease from 2500 liters to2450 liters at a 7-Eleven Petrol Station in Sydney.Also, when the price for Hyundai 7.5kW Inverter Split System Air Conditioner (ReverseCycle) increased from AUD 950.00 to AUD 990.00; demand for these air conditionersfell from 2500 units to 2000 units.Following this condition, answer the questions below.i. Using the mid-point formula calculate the price elasticity of demand for petroland Hyundai 7.5kW Inverter Split System Air Conditioner (Reverse Cycle).ii. Is the price elasticity of demand: elastic, unit elastic, or inelastic for eachcommodity (petrol and Hyundai 7.5kW Inverter Split System Air Conditioner(Reverse Cycle)? iii. Suppose the government decides to increase tax for petrol and Hyundai 7.5kWInverter Split System Air Conditioner (Reverse Cycle). Use two diagrams toexplain the incidence of the tax increase for…
During the year, Brownout Company experienced the following power outages:Number of Power Outages Per Month Number of Months 0 3 1 2 2 4 3 3 12Each power outage results in out of pocket costs of P400. For P500 per month, the company can lease an auxiliary generator to provide power during outages. If the company leases an auxiliarygenerator next year, the estimated savings (or…
Clippers Inc. (CI) manufactures two types of garden clippers. A light-duty model, called the “half-inch,”is intended for clipping branches and stems up to one-half inch thick. The “one-inch” model is designedfor heavier stems and branches. To boost sales, CI decided at the beginning of the current year to reducethe price of the half-inch model to better position its price relative to some key competitors. On the otherhand, CI felt that the one-inch model was technically superior to competitors’ models and decided that asmall price increase was appropriate. The data for the current and prior year are as follows:Current Year Prior YearSales units 7,200 6,500Sales mix for each productHalf-inch model 50% 30%One-inch model 50% 70%PriceHalf-inch model $12.00 $14.00One-inch model $36.00 $32.00Variable cost per unitHalf-inch model $6.00 $6.00One-inch model $8.00 $8.00Fixed cost $35,000 $35,000Required1. Prepare a comparative contribution income statement for CI for the current year that shows…
Nicole, an athletic trainer, believes if she has evidence that her program of exercise works, she can recruit more clients. She is planning to conduct a study to determine if working out for one hour per day with her fitness program causes a person to lose weight. She will track the participants’ progress over a twelve-week period. Nicole mandates that her clients at the gym participate in her study, and she asks them to each find one friend who is not a member of the gym to also participate. Each of the participants weighs in at the start and again after the twelve-week period has ended. At the conclusion of the study, she will compare the results of both groups. Unfortunately, because she has not had any formal training in research methodology, she is not certain how to label the different components in her study or identify any potential flaws. Help Nicole with the following components of this study. Identify the following issues with the study described. Ethical Concerns…
Nicole, an athletic trainer, believes if she has evidence that her program of exercise works, she can recruit more clients. She is planning to conduct a study to determine if working out for one hour per day with her fitness program causes a person to lose weight. She will track the participants’ progress over a twelve-week period. Nicole mandates that her clients at the gym participate in her study, and she asks them to each find one friend who is not a member of the gym to also participate. Each of the participants weighs in at the start and again after the twelve-week period has ended. At the conclusion of the study, she will compare the results of both groups. Unfortunately, because she has not had any formal training in research methodology, she is not certain how to label the different components in her study or identify any potential flaws. Help Nicole with the following components of this study Identify the following factors. Independent Variable Operational Definition of…
Maximus Steel plans to introduce one of three new products code-named: Wren, Hawk, and Nightingale. The marketing department indicated that the success of any product depends on the market conditions (Favorable, Neutral, or Unfavorable). The profit the company will earn also depends on the market conditions. The table below shows the probability estimated for each market condition and the profits Maximus Steel will realize within those conditions: Product Code Market Conditions Favorable P = 0.2 Neutral P = 0.7 Unfavorable P = 0.1 Wren $120,000 $70,000 ($30,000) Hawk $60,000 $40,000 $20,000 Nightingale $35,000 $30,000 $30,000 Maximus Steel is considering hiring a market research firm to do a survey to determine future market conditions. The results of the survey will indicate either positive or negative market conditions. There is a 0.60 probability of a positive report, given favorable conditions; a 0.30 probability of a positive…
Maximus Steel plans to introduce one of three new products code-named: Wren, Hawk, and Nightingale. The marketing department indicated that the success of any product depends on the market conditions (Favorable, Neutral, or Unfavorable). The profit the company will earn also depends on the market conditions. The table below shows the probability estimated for each market condition and the profits Maximus Steel will realize within those conditions: Product Code Market Conditions Favorable P = 0.2 Neutral P = 0.7 Unfavorable P = 0.1 Wren $120,000 $70,000 ($30,000) Hawk $60,000 $40,000 $20,000 Nightingale $35,000 $30,000 $30,000 Part 1 Instructions: Develop the opportunity loss table and compute the expected opportunity loss for each product.
1. Klara started working at a deli shop on April 1, 2020. On October 19, 2020 she informed her employer that she is pregnant and is due on February 1, 2021. Her employer informed her that they are not able to provide her any paid time off since it is a very small shop. They will, however, provide her with unpaid time off if she needs it. She has indicated that she would like to take her pregnancy leave starting November 2. Klara is concerned that the deli is hiring someone to replace her when she is on her leave. Which of the following is true: A. Klara has a right to her job back when her leave is over unless the position no longer exists for reasons other than Klara taking a leave. B. Klara is entitled to 17 weeks of pregnancy leave and up to 78 weeks of maternal leave. C. Klara is entitled to 17 weeks of pregnancy leave but all of her pregnancy leave Thust be taken before the birth of her baby D. Klara is entitled to 17 weeks of pregnancy leave and 63 weeks of parental leave. 2.…
A motion picture industry analyst is studying movies based on epic novels. The following data were obtained for 10 Hollywood movies made in the past five years. Each movie was based on an epic novel. For these data, x1 = first-year box office receipts of the movie, x2 = total production costs of the movie, x3 = total promotional costs of the movie, and x4 = total book sales prior to movie release. All units are in millions of dollars. x1 x2 x3 x4 85.1 8.5 5.1 4.7 106.3 12.9 5.8 8.8 50.2 5.2 2.1 15.1 130.6 10.7 8.4 12.2 54.8 3.1 2.9 10.6 30.3 3.5 1.2 3.5 79.4 9.2 3.7 9.7 91.0 9.0 7.6 5.9 135.4 15.1 7.7 20.8 89.3 10.2 4.5 7.9 a) Suppose Hollywood is planning a new epic movie with projected box office sales x1 = 100 million and production costs x2 = 12 million. The book on which the movie is based had sales of x4 = 9.2 million. Forecast the dollar amount (in millions) that should be budgeted for promotion costs x3 and find an 80% confidence interval for your…
Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new infectious disease called chpitis is spreading through the Pcorian population. Chpitis is not fatal but leaves victims severely disfigured for the remainder of their lives. The Pcorian government surveys victims to determine how burdensome chpitis is. Respondents claim they are indifferent between living ten years without chpitis and living twelve years covered with chpitis scars. Most respondents explain that they face a major social stigma in Pcoria’s schools and workplaces. What is the implied quality weight q for the aftermath of chpitis? Now assume that a drug company has developed an ointment that can be used to treat chpitis sores and reduce scarring. Surveys indicated that the ointment, which costs $50,000 for a full course of treatment, can improve quality of life from 0.8 to 0.9 for chpitis survivors. What is the ICER for taking the ointment over…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS

With a = 0.1 and the initial forecast for October of $1.83, using exponential smoothing, the forecast for periods 11 and 12 is (round your responses to two decimal places) Month Forecast Oct $1.83 Nov Dec