uantitative Methods for Business and Management ( BUSN 401) Assignment #1 Student Name: Student ID: Section: Note: The rubrics for this assignment is uploaded in a separate file Use Excel Megastat wherever required and copy paste the answers. Further, upload the Excel-megastat file along with your assignment Q. 1. Barbour Electric is considering the introduction of a new product. This product can be produced in one of several ways: (a) using the present assembly line at a cost of $25 per unit, (b) using the current assembly line after it has been overhauled (at a cost of $10,000) with a cost of $22 per unit; and (c) on an entirely new assembly line (costing $30,000) designed especially for the new product with a per unit cost of $20. Barbour is worried, however, about the impact of competition. If no competition occurs, they expect to sell 15,000 units the first year. With competition, the number of units sold is expected to drop to 9,000. At the moment, their best estimate is that there is a 40% chance of competition. They have decided to make their decision based on the first year sales. (a) Develop the decision table (EMV). (b) Develop a decision table (EOL). (c) What should they do? Q.2. Q. 3. Sales of industrial vacuum cleaners at R. Lowenthal supply Co. over the past 13 months are as follows: Q.4 (e) Using the above data, develop a multiple regression model to predict sales (both trend and seasonal components), using dummy variables to incorporate the seasonal factor into the model. Use this model to predict sales for each quarter of the next year. Comment on the accuracy of this model