QMB 3600 Quantitative Methods in Business
Project A: Version
Professor Decker
Project A: Using Probabilities to Make Decisions (Unit 2)
Spade: Unknown economy
You are to work on this alone. The only person you may take to about it is Professor Decker. It

Angela Johnson
Homework 1
1-3
The three categories of business analytics are descriptive, predictive, and prescriptive.
Descriptive is the study and consolidation of historical data for businesses and industries.
Predictive forecast future outcomes based

Homework Assignment # 5
3-3 - Coefficient of determination represents the proportion of the variance in the response
variable that is predicted by the independent variable in the regression analysis. It ranges from
0 to 1; o means the response variable ca

Homework Assignment 3
2-3. An alternative is a course of action or a strategy that may be chosen by a decision maker.
State of Nature is an outcome or occurrence over which the decision maker has little or no
control.
2-4. The basic differences between de

Homework #10 Answers
8-2 Transportation problem deals with the distribution of goods from several points of supply sources to
the number of points of demand destination. The number of variables and constraints for a typical
transportation problem can be f

Homework Assignment #6
3-5 The adjusted r squared determines whether the addition of more variables used in the
regression model is useful or not. It gives a better picture over the normal r squared. When it
start to fall when more than the required numbe

Homework Assignment 2 Answers
Angela Johnson
Problem 1
The two basic laws of probability are: (1) the probability values assigned to each experiment outcome
must be between zero and one. (2) The sum of all experimental outcome probabilities must equal one

Homework # 4 Answers
2.7 The decision tree should have information about alternatives, payoff or loss from every
alternative in each state of nature, the probabilities associated with each state of nature given the
state of nature and probabilities of eac

Homework #8 Answers
7-5 Kleenglass can produce 200 dishwashers in June, 200 in July and 200 in August on regular time. As
for overtime no dishwashers need to be produced in June, 10 dishwashers in July and 5 in August on
overtime.
7-7 Diversey paint shoul

Cluster Sampling
Divide the population into clusters (sections) and then randomly select
some clusters and sample all members of those clusters.
Convenience Sampling
Use results that are already available
Descriptive Statistics
Summarize or describe the i

Statistics
A collection of methods for;
-planning experiments
-obtaining data
-organizing, summarizing, presenting, analyzing, interpreting, and
drawing conclusions
Data Set
A set of measurements obtained on some variable
Population
Complete collection of

Consumer surveys
Solicit input from customers or potential customers
Outside opinions
Opinions from outside experts or consultants
Delphi menthod
Circulate questionnaires among managers and staff. Responses are
anonymous. Each new questionnaire is develop

Ch
b. YTM is 10%
c. YTM is 13%
Comment apter 10 (Problems #2-3, 9, 24, 27-28) by 12/3
Enron meltdown was due to their undoing. This company did not care about ethics.
Enron was not honest, they did not have any morals and they did not communicate with
the

QMB3600
Linear Programming
Quiz 4
Name _
_A_ 1. A widely used mathematical programming technique designed to help managers
and decision making relative to resource allocation is called
A) linear programming.
B) computer programming.
C) constraint programm

Relative Frequency Bar Chart
Plot the relative frequencies rather than the class frequencies. The
plot looks the same, only the Y-axis scale is different
Pie Chart
A chart that shows the proportion or percent that each class
represents of the total number

dependent Events
Events are said to be independent when one outcome does not
influence the probability of another outcome
Dependent Events
Events are said to be dependent when one outcome does influence
the probability of another outcome
Sampling with rep

t-distribution
A symmetrical, bell-shaped distribution that is contingent on sample
size. It has a mean of zero and a standard deviation equal to 1
Type I Error
An error that occurs when a researcher concludes that the
independent variable had an effect o

QMB3600
Quiz 2
Name _Sewanda Smith_
Place the correct letter in the blank to the left of the question
_D_1. An analytic and systematic approach to the study of decision making is referred
to as
A) decision making under risk.
B) decision making under uncer

Homework #9 Answers
7.4 The optimal daily mix of the three feeds is 1.333 pounds of oat and 3.333 pounds of mineral product
which makes the daily minimum cost per day 0.6867.
7.8 In the month of March, 30 cars are in a 5-month lease, the remaining cars ne

Chapter 6 Homework #7 Answers
6-2 Assumptions and requirement for an LP model to be formulated and used; There are several
requirements LP implies that all the conditions are certain, which means the coefficients of objective
functions and constraints are

2 CHAPTER I 0 INTRODUCTION TO QUANTITATIVE ANALYSIS
1.1 Introducon
1.2 What Is Quantltavo Analysls?
WV! analysis uses a
Sdmtic approach to decision
making.
Both qualitative and quantitative
factors must be considered.

QMB 3600 Quantitative Methods in Business
Fall 2016
Professor Decker
Online Sections 69151 & 69153
Schedule: Week by Week
Due Dates
Each day usually has a homework and a quiz. They are due on Sundays at 11:59 PM.
Projects are due on Wednesdays at 11:59 PM

Expected Value is what should
happen, on average, per trial if there
are many trials.
This is related to the Law of Large
Numbers.
Expected Value = EV
If xs represent all outcomes and p(x)
represents the probability of x
happening:
EV = [xp(x)]
This formu

3A Correlation
QMB 3600
PROFESSOR DECKER
Scatter Plots & Time
Series
QMB 3600
PROFESSOR DECKER
Scatter Plots & Time Series
This is an Excel lesson.
r and r
2
QMB 3600
PROFESSOR DECKER
Measuring Strength of Linear
Correlation
Linear correlation: A relation

Quick Review:
Optimistic Approach
P (s1) = 0.8 and P (s2) = 0.2
Optimistic Approach: Finding and recommending the decision alternative with the best payoff that can
occur. When the maximum profit is desired, as in this problem, the best payoff is the deci

Quantitative Methods in Business
QMB 3600 Prof. Decker
Course Notes - Chapter 1: Introduction to Quantitative Analysis
1.2 What Is Quantitative Analysis?
- Quantitative Analysis uses a scientific approach to decision making. Both qualitative and quantitat

E
B
N
S
Probability
1)
U
42
23
17
0.5
Optimistic
B
N
S
Maximax
-30
-12
2
0.5
Max
2)
Conservative
B
N
S
Maximin
42
23
17
42 S
Regret Table
E
B
N
S
U
0
19
25
32
14
0
Max
3)
4)
B
N
S
32
19
25
Minimax
19 N
E
U
5)
6)
7)
B
N
S
Probability
42
23
17
0.5
8)
9)
10)

QMB 3600 Quantitative Methods in Business
Professor Decker
Project B: Correlation and Linear Regression
Choose a real world business data set of at least 15 pairs of numeric data points.
Immediately check to see if the p-value is less than 0.10. If p-valu

1. Resource restrictions are called constraints.
2. All equations must be linear in linear programming
3. Sensitivity analysis enables us to look at the effects of changing the coefficients in the
objective function, one at a time.
4. For a linear program