# We also put the condition that t and a should be

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We also put the condition that T and A should be integer. – First constraint represent funds available. (in 1000s) – Second constraint represents managers time. – Third constraint represents Townhouse available. The optimal solution is (2.479,3.252). The value of the objective function is con- stant along the line 10 T + 15 A = c and it increases for the lines away from the origin. The op- timal solution lies along the line 10 T + 15 A = 73 . 574 The maximum value of the ob- jective function is 73.574. However, we are interested in integer solution. Rounding the solution to (2,3) gives the objective function value 65, which is less than the non-integer solution. However, we are not sure that this is the optimal integer solution. Rcode/QM shows that the solution is (4,2) and the optimal solution is 70.
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3 1 st Week Learning Activity Problem 3.0.1 Consider the following time series data: Week 1 2 3 4 5 6 Value 18 13 16 11 17 14 Compute three week moving average forecast and forecast using exponential smoothing ( α = 0 . 02). Problem 3.0.2 Consider the following time series data: 32
BUSI 2013 FALL 2020 Week 1 2 3 4 5 6 Value 18 13 16 11 17 14 You computed three week moving average forecast and forecast using exponential smoothing ( α = 0 . 02) in the previous learning activity. Compute mean absolute error and mean square error for these methods. 33
4 2 nd Week Learning Activity Problem 4.0.1 Data given here provides information on the amount of gasoline sold per week. Find the regression equation for the linear trend com- ponent for the gasoline sales time series. after signing the new contract. Figure 6.2 shows the correspondi the increased level of the time series beginning in week 13. This time series makes it more difficult to choose an appropriate forec a forecasting method that adapts well to changes in the level of tant consideration in many practical applications. Trend Pattern Although time series data generally exhibit random fluctuation show gradual shifts or movements to relatively higher or lower va 192 Chapter 6 Time Series Analysis and Forecasting Week Sales (1000s of gallons) Week Sa 1 17 12 2 21 13 3 19 14 4 23 15 5 18 16 6 16 17 7 20 18 8 18 19 9 22 20 10 20 21 11 15 22 TABLE 6.2 GASOLINE SALES TIME SERIES AFTER OBTAINING T THE VERMONT STATE POLICE file WEB Gasoline Revised 10 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 40 35 30 20 5 25 15 Sales (1000s of gallons) Week FIGURE 6.2 GASOLINE SALES TIME SERIES PLOT AFTER OBTAIN WITH THE VERMONT STATE POLICE 62345_06_ch06_p188-244.qxd 12/22/11 2:39 PM Page 192 34
BUSI 2013 FALL 2020 Problem 4.0.2 A financial advisor at Baroda Investments identified two companies that are likely candidates for a takeover in the near future. Eastern cable is a leading manufacturer of flexible cable systems used in the construction industry, and comswitch is the new firm specializing in digital switching systems. Eastern cable is currently trading for 40 per share, and comswitch is currently trading for 25 per share. If the takeovers occur, the financial advisor estimates that the price of eastern cable will go to 55 per share and comswitch will go to 43 per share. At this point in time, the financial advisor has identified