Question: Question 13. Given the historical demand found in the table below estimate the slope and intercept of the linear trend line. (10 Points) Period 1
Question 13. Given the historical demand found in the table below estimate the slope and intercept of the linear trend line. (10 Points)
| Period | 1 | 2 | 3 | 4 | 5 | 6 |
| Demand | 18 | 20 | 23 | 25 | 26 | 30 |
Question 14. Using the Forecasts and Actual values in the table below calculate the MAD, MSE, and MAPE. (15 Points)
| Period | Actual | Forecast |
| 1 | 83 | 76 |
| 2 | 96 | 94 |
| 3 | 97 | 89 |
| 4 | 108 | 112 |
| 5 | 79 | 89 |
| 6 | 87 | 84 |
| 7 | 103 | 109 |
Question 15. Using the table below, what is the break even point for each number of workers if the variable cost of each item is $1 and the revenue gained from each sale is $3? (5 Points)
| Number of Workers | Monthly Fixed Costs | Range of Outputs |
| 1 | 150 | 0 to 100 |
| 2 | 300 | 101 to 200 |
| 3 | 450 | 201 to 300 |
Question 16. Buy Me Toys has a new idea for the must have toy for kids this holiday season. However, they need to either build a new factory or setup a contract to have the toys produced by another company. If they build a big factory it will cost $5M (million), if they build a small factory it will cost $2M, if they setup a contract it will cost $1M. The probability of the toy being a big hit is .05, an average hit .7, and not a hit .25. Revenue for a big factory would be $20M with a big hit, $10M for average, and $4M for not a hit. Revenue for a small factory would be $10M with a big hit, $10M for average, and $4M for not a hit. Revenue for a production contract would be $4M with a big hit, $3M for average, and $2M for not a hit. Create a decision tree and solve it for the expected value taking into account the cost of the factory/contract. Based on the expected values which option should Buy Me Toys go with? (10 Points)
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