# ENG 121-A company is introducing a new snowshoe

Problem 1:A company is introducing a new snowshoe and must decide how much capacity will be needed tomanufacture it. They developed Table 2.4 showing expected profit for the first year (\$000âs).Table 2.4AlternativeSmall PlantMedium PlantLarge PlantLow (.30)4020-10DemandMod. (.50)507560Heavy (.20)55751001.Using the information in Table 2.4, what alternative would be chosen if the maximax criterion isused? What is the value of the decision?2.Using the information in Table 2.4, what decision would be made if the maximin criterion is used?What is the value of the decision?3.Using the information in Table 2.4, what decision would be chosen if the minimax regret criterion isused? What is the value of the decision?4.Using the information in Table 2.4, what decision would be chosen if the equal likelihood criterion isused? What is the value of the decision?5.Using the information in Table 2.4, what decision would be chosen if the Hurwicz criterion is usedwith alpha = .30? What is the value of the decision?6.Using the information in Table 2.4, what is the expected value of the best decision? What is the valueof the decision?7.Given the information in Table 2.4, what is the expected value with perfect information? What is theexpected value of perfect information?Problem 2:A large school district is reevaluating its teachers’ salaries. They have decided to useregression analysis to predict mean teacher salaries at each elementary school. Theresearcher uses years of experience to predict salary. The raw data is given in the tablebelow. The resulting equation was:Y = 19389.21 + 1330.12X, where Y = salary and X = years of experienceSalary\$24,265.00\$27,140.00\$22,195.00\$37,950.00\$32,890.00\$40,250.00\$36,800.00\$30,820.00\$44,390.00\$24,955.00\$18,055.00\$23,690.00\$48,070.00\$42,205.00Yrs Exp85215111496212172016(a) Develop a scatter diagram.(b) What is the correlation coefficient?(c) What is the coefficient of determination?Problem 3:Use the sales data given below to determine:Year1995199619971998Sales (units)130140152160Year1999200020012002Sales (units)169182194?(a)the least squares trend line.(b)the predicted value for 2002 sales.(c)the MAD.(d)the unadjusted forecasting MSE.==============================================================================Problem 4:For the data below:MonthJanuaryFebruaryMarchAprilMayJune(a)(b)(c)AutomobileBattery Sales202115141316MonthJulyAugustSeptemberOctoberNovemberDecemberDevelop a scatter diagram.Develop a three-month moving average.Compute MAD.AutomobileBattery Sales171820202123

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