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A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm’s capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the table below.    Next Year’s Demand Alternative Low High Do nothing $50 $60 Expand 20 80 Subcontract 40 70   Which alternative should be selected if the decision criterion is minimax regret?  (Study Guide Question)

The following is a payoff table of a decision that you should make. Using Minimax Regret decision approach, what is your optimal decision? Possible Future Demand Alternatives Low Moderate High 1 10 10 10 2 7 12 12 3 2 14 14 4 -4 2 16 (Class Example)

To _____ an activity means to shorten the time it will take.

The postmaster of a small western town receives a certain number of complaints each day about mail delivery. Determine three-sigma control limits using the following data.  Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Comp. 4 10 14 8 9 6 5 12 13 7 6 4 2 10 What is the UCL?  (Study Guide Question)

The advertising manager for Roadside Restaurants, Inc., needs to decide whether to spend this month’s budget for advertising on print media, television, or a mixture of the two. She estimates that the cost per thousand “hits” (readers or viewers) will vary depending upon the success of the new cable television network she plans to use, as follows: Strategy Cable Network Successful Failure Print $10 10 Mixed 4 14 Television 1 21   If she uses the maximin criterion, which advertising strategy will she use? (Variant of Class Example)

Compute the seasonal relative for quarter 1 for this data using the centered moving average method. Quarter Year 1 Year 2 1 2 3 2 6 10 3 2 6 4 5 9

An electrical contractor’s records during the last five weeks indicate the number of job requests: Week:             1          2          3          4          5 Requests:          20        22        18        21        22 Predict the number of requests for week 6 using the following method:   Exponential smoothing with α=.30. Use 20 for week 2 forecast.

Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: Predicted Demand Period Demand F1 F2 1 68 66 66 2 75 68 68 3 70 72 70 4 74 71 72 5 69 72 74 6 72 70 76 7 80 71 78 8 78 74 80 What is the MAD for F1? 

Which of the following is not a type of judgmental forecasting?

The range of probability for which an alternative has the best expected payoff can be determined by: