APPLIED DECISION METHODS GBA 334-Midterm-Saint Leo University-2019-A+ Graded 100%

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APPLIED DECISION METHODS GBA 334-Midterm-Saint Leo University-2019-A+ Graded 100%Which of the following is not a common pitfall of regression? If the assumptions are not met, the statistical tests may... not be valid. Using a regression equation beyond the range of X is very questionable. Nonlinear relationships cannot be incorporated. Two variables may be highly correlated to one another but one is not causing the other to change. Concluding that a statistically significant relationship implies practical value.A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. Alternative Bid Accepted Bid Rejected Buy 1 machine $10 $5 Buy 2 machines $30 $4 Buy 3 machines $40 $2 Using the information above, which alternative should be chosen based on the Laplace criterion? Buy 1 machine Buy 3 machineWhich of the following is a technique used to determine forecasting accuracy? Exponential smoothing Mean absolute percent error Delphi method Regression Moving averageData for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is less than $85? 0.999 0.001 0.382 None of the above 0.618Determining the worst payoff for each alternative and choosing the alternative with the “best of the worst” is the approach called: expected monetary value Laplace maximax maximin minimax regretA local ice cream shop sells 10,000 cones of vanilla-flavored ice cream each year. The cones are ordered from an outside supplier and it takes 5 days for each shipment of cones to arrive. Ordering costs are estimated at $15 per order. Carrying costs are $5 per cone per year. Assume that the ice cream shop is open 250 days a year. What is the optimal EOQ for ice cream cones? 81.65 186.75 244.95 122..47 [Show More]

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