Each year the admissions committee at a top business school receives a large number of applications for
Question:
a. Suppose 750 students are admitted. What is the probability that the class size will be at least 720 students?
b. It is hard to associate a monetary value with admitting too many students or admitting too few. However, there is a mutual agreement that it is about two times more expensive to have a student in excess of the ideal 720 than to have fewer students in the class. What is the appropriate number of students to admit?
c. A waiting list mitigates the problem of having too few students since at the very last moment there is an opportunity to admit some students from the waiting list. Hence, the admissions committee revises its estimate: It claims that it is five times more expensive to have a student in excess of 720 than to have fewer students accept among the initial group of admitted students. What is your revised suggestion?
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Related Book For
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch
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