Please write neatly. Will thumbs up if correct. 2. You want to build your first home here in the Houston area. You make a list of the attributesyou want in this house: at least 2,000 square feet of living space; two full bathrooms, a two-car garage, no basement, and a fireplace. You can choose any construction class that youdesire (economy, average, or custom). You can also choose either a 1 or 2 story home.Given the hot humid weather, you must have air conditioning. Finally, you want 250 linearfeet of fence to enclose the back yard. You must select at least 20 windows (containing atleast two bay windows, a skylight, and at least three other different sized windows). Youmust select the appropriate cabinets for the kitchen and bathroom. You must also includethe appliances. Finally, you may include any additional items that you would like in yourhome (porch, smoke detectors, seeding, sprinkler system, sidewalk, etc.).An additional cost of this project is the purchase of the land for your house. For youranalysis, assume that the cost of the land will be 25% of the construction cost of the house.You decide that the largest construction loan you can afford is $250,000, so your costestimate must be below that amount.a) Prepare a scope of work (list of items to be included in the house)b) Show your calculations using the square footage cost estimation method. Make surethat you clearly show all of your assumptions. (Table format is great)c)Explain any decisions or tradeoffs that you had to make in order to meet the budgetaryconstraints.

Building a first home is an exciting but difficult endeavor, especially when there are tight…

Answered: You decide that the largest…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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Suppose that you’re a finance major and upon graduation you want a job, preferably as a personal financial planner, with a minimum salary of Rs 1,50,000 and within a hundred miles of your hometown. You accept a job offer as a business credit analyst—not exactly a personal financial planner but still in the finance field—at a bank 50 miles from home at a starting salary of Rs 1,20,000. If you had done a more comprehensive job search, you would have discovered a job in personal financial planning at a trust company only 25 miles from your hometown and starting at a salary of Rs 1,60,000. Were you a perfectly rational decision maker in this case? Why or why not? Explain.
b) Your company is testing a site for drilling for oil. You may hit dry well, a small oil well, or a large oil well. Dry well Small oil well Large oil well Drill -5000 1000 6000 Do not drill ii. What would be the best decision under the maximax, maximin, and Laplace criteria?
2. Assume that consumers evaluate new cars on two features: Number of Cupholders (C), and Sexiness of design (S). Chevrolet currently offers the following line-up of models: • Chevy Camaro: C = 2, S = 7 • Chevy Tahoe: C = 6, S = 3 In addition, Chevrolet has the following new models that it could roll out, if necessary: • Chevy Bolt: C = 3, S = 4 • Chevy Corvette: C = 1, S = 9 Chevy Malibu: C = 4, S = 3.5 • Chevy Colorado: C= 2, S= 5 • Chevy Suburban: C = 8, 8 = 1 (a) Some executives at Chevy want to increase the sales of the Camaro by adding exactly one of its new models to the line up. Which car could they add to do so? Why might adding this car help? If there are multiple cars they could add, please answer the questions for each possibility. (b) Some other Chevy executives want to increase the sales of the Tahoe by adding exactly one of its new models to the line up. Which car could they add to do so? Why might adding this car help? If there are multiple cars they could add, please…
Bill Holliday isn't sure what he should do. He can build a four-apartment building, a two-apartment building, gather additional information, or simply do nothing. If he gathers additional information, the results could be favorable or unfavorable, but it would cost him $3,000 to gather it. Bill thinks there is a 50-50 chance that the information will be favorable. If the rental market is favorable, Bill will earn $15,000 with four apartments or $5,000 with two. He does not have the financial resources to pursue both options, but with an unfavorable rental market he would lose $20,000 with four apartments or $10,000 with two. Without gathering additional information, Bill estimates the probability of a favorable rental market to be 0.7. A favorable survey report would increase the probability of a favorable rental market to 0.9. Moreover, an unfavorable report of the additional information would decrease the probability of a favorable income market to 0.4. Of course, Bill can forget…
Seneca Hill Winery recently purchased land for the purpose of establishing a new vineyard. Management is considering two varieties of white grapes for the new vineyard: Chardonnay and Riesling. The Chardonnay grapes would be used to produce a dry Chardonnay wine, and the Riesling grapes would be used to produce a semidry Riesling wine. It takes approximately four years from the time of planting before new grapes can be harvested. This length of time creates a great deal of uncertainty concerning future demand and makes the decision concerning the type of grapes to plant difficult. Three possibilities are being considered: Chardonnay grapes only; Riesling grapes only; and both Chardonnay and Riesling grapes. Seneca management decided that for planning purposes it would be adequate to consider only two demand possibilities for each type of wine: strong or weak. With two possibilities for each type of wine it was necessary to assess four probabilities. With the help of some forecasts in…
4. A bank must decide which branch office to assign the account of a particularly important and high maintenance client. Is this an example of a strategic, tactical, or implementation level of decision? (See Noteshaper Quick Start Question 13) 5. A bank must decide if a particular branch office should be closed and its current location sold to another bank. Is this an example of a strategic, tactical, or implementation level of decision? (See Noteshaper Quick Start Question 14) 6. A bank has just received an electronic signal that one of its ATMS is out of service due to a lack of cash to distribute. The bank must decide whether to send a courier to restock the ATM immediately (after business hours) or to allow it to remain out of service until the main banking operation opens the following business day. Is this an example of a strategic, tactical, or implementation level of decision? (See Noteshaper Quick Start Question 15) 7. Identify a strategic, tactical, and implementation…
Maximax, Maximin, Minimax RegretLearning material: Watch this videoLab Scenario:Imagine a local entrepreneur is considering starting a business and has three options: open a coffeeshop, a bookshop, or a fusion coffee-bookshop. The entrepreneur is uncertain about the market'sreaction to these businesses. The possible market conditions are: favorable, neutral, and unfavorable.Data (Payoff Table in USD):Business Option Favorable Market Neutral Market Unfavorable MarketCoffee Shop 150,000 70,000 -30,000Bookshop 100,000 60,000 -20,000Fusion Shop 130,000 80,000 -10,000Positive values represent profits, and negative values represent losses.Assignment Steps:1. Maximax (Optimist's Criterion) Approach:For each business option, identify the maximum possible payoff.First Question What is the business option with the highest of these maximum payoffs? (5points)2. Maximin (Pessimist's Criterion) Approach:For each business option, identify the minimum possible payoff.Second Question What is the…
Which of the following types of property is eligible for an FHA purchase transaction? Rental property Personal property CO Agricultural property DO HUD real estate-owned property BO
the market in the small rural town of centerville has been very hot. values are leveling off but single family residences remain scarce . a potential buyer asks about the advisability of buying some farmland outside of town to develop into single family lots for sale to builders. she has noticed several builders already getting ready for new subdivisions by preparing new lots . how might a broker best advise this potential buyer. a) he should suggest to this potential buyer that her timing is perfect. The slowing residential market will give her a chance to get the lots ready and she can probably pre-sell some to builders and raise some cash. Since strong markets usually last a decade or more, she should line up her financing and get started. b) in a cycle like the one described, builders always play "follow the leader". The builders obviously will sell their new homes quickly and a broker should encourage this potential buyer to go ahead with her plan to she can be ready to profit by…
There are four hotels competing with otherwise very similar products on the dimensionsof price ($ per night) and amenities (measured by the number of *s awarded by customer reviews).Hotel A: price = $200 per night; rating: ***Hotel B: price = $150 per night; rating: ****Hotel C: price = $300 per night; rating *****Hotel D: price = $80 per night; rating **Which of these hotels are on the efficient frontier? You may select more than one answer.
#3) In the environment of increased competition, a fitness club executive is considering the purchase of additional equipment. They are choosing between Acme, Standard and High Pro. With new equipment they can attract new clients and increase their overall profits. The profits are dependent on the markets demand for the new equipment and brand name recognition. If they go with the Acme equipment, there profit would be $375,000 in a favorable market or -$125,000 in an unfavorable market. If they go with the Standard equipment, there profit would be $250,000 in a favorable market or -$95,000 in an unfavorable market. If they go with the High Pro equipment, there profit would be $175,000 in a favorable market or -$50,000 in an unfavorable market. a) Create a decision table and a decision tree. b) If the executive is an optimistic decision maker, which alternative will he choose? What is the payoff? c) If the executive is a pessimistic decision maker, which alternative will he choose? What…
How would you go about attempting to come upwith the probability of a “super-event” or the probability of a“unique-event?” What factors would you consider?

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