Swarthy Confidence - Swarthy Snow Industries How confident...

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Swarthy Snow Industries: How confident are you in the model? Final Objectiv e Allowable Allowable Name Value Coefficie nt Increase Decrease Production S1 3,000.00 191.60 Infinity 54.13 Production S2 699.10 314.80 123.95 314.80 Production S3 1,500.00 108.50 Infinity 36.46 Final Shadow Constrai nt Allowable Allowable Name Value Price R.H. Side Increase Decrease S1 Demand 3,000.00 54.13 3,000.00 312.26 231.05 S2 Demand 699.10 - 800.00 Infinity 100.90 S3 Demand 1,500.00 36.46 1,500.00 337.51 440.93 Labour (hours) used 55,000.00 13.46 55,000.0 0 2,359.00 16,345.00 Wood (meters) used 9,648.20 - 10,000.0 0 Infinity 351.80 Using the information provided in the question and the table above, explain how confident you are on this being the optimal model (provide calculations and rationale). Test coefficients with the error term to see if they are within the “allowable range”. If they are then we can say with confidence that this is the best model. The LP model is based on inputs from regression. These inputs are not precise numbers but rather are estimates based upon historical information. The labor cost
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