Chapter 1, Problem 4PE

For each of the following scenarios, state whether descriptive, predictive, or prescriptive analytics tools would most likely be used.

1. a. The chief financial officer for a small manufacturing firm would like to estimate the net profit that the firm could expect over the next three years.
2. b. A human resource manager needs to understand whether the company’s current employee mix has the skills and capabilities needed to achieve the goals laid out by a new strategic plan.
3. c. A financial advisor would like to develop the best mix of stocks, bonds, and other investments for a client to achieve a comfortable level of risk.
4. d. A large service firm wishes to determine how to invest the cash received from its financial product to achieve the best return.
5. e. A logistics company wants to better understand the relative profitability of its numerous customers over the past three years.
6. f. A disaster relief agency needs to allocate its budget for the next year among various relief efforts and programs.
7. g. An automobile company would like to determine the number of vehicles it could sell next year based on the proposed price.
8. h. A baseball team would like to set ticket prices for different sections in its stadium to attract the highest number of fans throughout the season.