Chapter 1.2, Problem I.29E

Suppose that this particular study compared a large group of individuals who play squash regularly with those of an equal-sized group who get no exercise at all. Playing squash does provide a good cardiovascular workout. However, we also know that squash players tend to be affluent enough to belong to clubs with squash courts. Wealthy individuals may have great access to health care, which can also improve cardiovascular health. If our analysis is sloppy, we may attribute health benefits to playing squash when in fact the real benefit comes from being wealthy enough to play squash (in which case playing polo would also be associ ated with better heart health, even though the horse is doing most of the work). Or perhaps causality goes the other direction. Could having a healthy heart “cause” exercise? Yes. Individuals who are infirm, particularly those who have some incipient form of heart disease, will find it much harder to exercise. They will certainly be less likely to play squash…

What managers really want from data are clear, foolproof, no-work solutions and the simple ability to predict the future. They want to know exactly what the demand for their current and proposed products will be; how and when prices for goods, services, stocks, and securities will rise and fall; what dangers and opportunities exist within their grasp; and how their decisions will affect their costs of doing business in the present, the near future, and the long term. As business operations become more complex and competitive, and as data volumes grow, companies are increasingly turning to tools like simulation and machine learning to provide these predictions. Machine learning, in particular, has become very popular, largely due to the continued development and impressive performance of deep-learning algorithms for neural networks. In addition, simulations of various sorts have been used for many years to test and develop operational system designs and operational policy decisions.…

Jenny’s Stores is a retail chain with 150 outlets throughout North and South America. Faced with falling profit margins, the company is contemplating launching its own private brand that would reduce costs, improve margins, and allow it to pass on some of these benefits to its consumers. ***  Question | Which of the following, if true, would most strengthen the argument for launching private brands? A) Most customers visiting Jenny’s Stores are loyal to existing national brands.   B) The economy has started to improve, and consumer spending is increasing.   C) Customers at Jenny’s Store are likely to become more price-conscious over the next few years.   D) The company enjoys good relations with the suppliers and manufacturers of the brands that it sells in its stores.   E) The stores enjoy high visibility and attract foot traffic well.