ESEE1101 QUANTITAVE ANALYSIS A
GROUP ASSIGNMENT
PRESENTATION (5%) & WRITTEN REPORT (10%) – WEEK 13
DUE WEEK 13 (21 Oct 2010)
The assignment will earn you maximum of 15%. The assignment will require your group to submit a written report and do a presentation. You are given 2 case studies to be solved. Discuss in your group on how to solve all problems using the techniques you had learned in this course.

THE WRITTEN REPORT
The written report must contain all the information required. Each group should produce one written report. The report will be used to make the soft skills assessment (whether you have or do not have the skill) on Critical Thinking and Problem Solving Skills

CTPS5 : Ability to make decisions based on evidence
THE PRESENTATION
Your project group will make a presentation during the tutorial in Week 13. This will be based on your written report but you need to focus only on presenting the solution for one of the case studies. The case study to be presented will be notified during the tutorial class in Week 11. Discuss with your group members on what to be presented. You must explain what the problems are and how to solve it.

Each group will be given 10 MINUTES ONLY for the presentation. EACH PROJECT GROUP MEMBER MUST make a presentation.
The marks you get are a combination of group marks and individual marks. You and your group will be assessed on
1. Well organized presentation
2. Team work
3. Creativity
4. Demonstration of knowledge
5. Timing
6. Level of confidence
The presentation will also be used to make the soft skills assessment (whether you have or do not have the skill) on Communication Skills
CS1: Ability to express ideas clearly, effectively and confidently through oral and written modes
CS2: Ability to exercise active listening skills and respond to the ideas of others (for 2010/2011 intake)
CS3: Ability to make clear and confident presentations appropriate to the audience (for 2009/2010 intake or earlier)
CS4:...

...Take-Home Exam – Example Solutions
QUANTITATIVEANALYSIS AND BUSINESS DECISION MAKING
Question 1 – 5 Points
Leila took a standardized test and was told that her score was in the 89th percentile. Explain clearly and in only one sentence what this means. Notes:
Percentiles are a way of describing the position of a particular score within a set of scores As per the question, I was looking for one simple sentence to explain the meaning of the statement
Ideal Answer: If Leila’s score was in the 89 percentile this means that Leila scored higher than 89% of participants in the test.
th
Question 2 – 10 Points
A gas station near the Emirates Road is revaluating its gasoline-fuel reorder point. The gasoline fuel level in its main tank triggers an automatic replenishment order. The daily demand faced by the station for gasoline is normally distributed with an average of 8,000 liters and standard deviation of 2,500 liters. After the automatic order is placed, the gasoline-fuel is received at the gas station in exactly 3 days. In other words, it takes three days lead time for the gasoline to be replenished after the order has been made. At what volume should the re-order point be set to ensure that the station’s chance of being out of stock during the replenishment period is limited to a probability of 5%? Notes:
Those people who did not score full points on this question usually...

...represents a line in the 2D Cartesian space, because:
It represents a collection of infinite 2D points that satisfy the equation, namely, that make the two sides of the equation equal.
Notice a line is uniquely specified by two distinct points. If we draw infinite lines using any two distinct points in the collection, they will all coincide with one another, thereby forming one single line.
Slope: the amount X2 increases given one unit increase of X1
Intercept: the point where the line intersects with X2 axis.
Use above for Slope – great formula
Redundant Constraints – if removed will not affect the feasible region
Feasible Region – The set of all points that satisfy all constraints of the model
HW EXAMPLE
Apply Graphical analysis on the Golden Electronics problem with the correct formulation given in the
solution of Self-quiz 2. 1. Draw all the constraints 2. Identify the feasible region.
SEE HOMEWORK 1 as more example
RANGE OF OPTIMALITY
Apply the method of line of same profit on the Golden Electronics problem to identify the optimal solution graphically.
USING SOLVER
SEE HW2 FOR ADDITIONAL INFO
TREE SPANNING
SEE M3P1 for EXAMPLE
SEE M3P2 as EXAMPLE
SEE HW3
PROBABILITY
Statistics - The study of modeling uncertainty mathematically and its applications;
The conception of uncertainty is inspired by our daily observations of natural phenomena. There seem to be two components to these uncertain...

...
Quantitative Studies on Medication Adherence
Maleah Perdue
University of South Alabama
Introduction
Medication adherence is a significant issue in the health systems of today. Low medication adherence can unnecessarily increase cost of health care and the amount of admissions. According to Conn et al., inadequate medication adherence may account for up to 10% of older adult hospital admissions and may cause up to $100 billion in annual health care cost (2009). Increased medication adherence is likely linked to improved health outcomes while poor medication adherence can lead to exacerbations of disease or even fatality.
Area of Interest
The area of interest is medication adherence in adults that are living in the community. Specifically, older adults that are on multiple medications were looked at because of the increased medication adherence difficulties. There is an increased number of barriers to medication adherence with older adults including poly-pharmacy, comorbidities, vision impairment, hearing loss, and memory deficits among others.
Impact to Practice
Medication non-adherence impacts practice on a daily basis. The studies in these articles are looking to find methods that older adults use to increase medication adherence. Many different methods have a possibility of increasing medication compliance and if these methods could increase adherence the positive effect could be huge in the medical field. There would be less patients...

...CASE ONE
Two advertising media are being considered for promotion of a product. Radio ads cost $400 each, while newspaper ads cost $600 each. The total budget is $7,200 per week. The total number of ads should be at least 15, with at least 2 of each type, and there should be no more than 19 ads in total. The company does not want the number of newspaper ads to exceed the number of radio ads by more than 25 percent. Each newspaper ad reaches 6,000 people, 50 percent of whom will respond; while each radio ad reaches 2,000 people, 20 percent of whom will respond. The company wishes to reach as many respondents as possible while meeting all the constraints stated.
1. Develop the appropriate LP model for determining the number of ads of each type that should be placed.
2. Graph the constraints and identify the feasible region (clearly indicate the feasible region)
3. Solve the LP problem using e corner point method and comment on your findings.
CASE PROBLEM 1
1)
Radio Newspaper Min/Max
Cost 400 600 7200 Max
Min 1 1 15 Min
Max 1 1 19 Max
At least
2R 1 1 Min
At least
2N 1 2 Min
N ≤ 1.25R
Objective: 20 (2000) 5 (6000)
R = # Radio ads
N = # Newspaper ads
Therefore A= .20(2000) R + .5(6000) N
Constraints
400 R + 600N ≤ 7200
R + N ≥ 15
R + N ≤ 19
R ≥ 2
N ≥ 2
R, N ≥ 0
1.25 R – N ≥ 0
2)
400R+ 600N ≤ 7200 (4R + 6N ≤ 72)
R= (0, 18) N= (12, 0)
R + N ≥ 15
R= (0, 15)...

...BASIC QUANTITATIVEANALYSIS FOR MARKETING
BASIC TERMINOLOGY
Simple calculations often help in making quality marketing decisions.
If we are to assess the likely profit consequences of alternative actions, we must understand the cost associated with doing business as well.
We can calculate the expected revenue generated by each pricing strategy, but without cost information, it is not possible to determine the preferred price. The cost concepts we introduce are:
- Variable cost
- Fixed cost
- Total cost
We combine the cost information with price information to determine unit contribution and total contribution.
This Figure is a good enough approximation of actual cost behaviour
Total cost The total cost line (the solid line) does not go through the origin, i.e., for a zero output level, total cost is not zero.
Fixed cost We call OA the firm’s “fixed costs.” Fixed costs are those costs which do not vary with the level of output. An example of a fixed cost is the lease cost of a plant.
Variable cost The variable cost increases as output increases.
TOTAL COST = FIXED COST + TOTAL VARIABLE COST
Contribution
Unit contribution = PriceUnit (P) – Variable costUnit (VB)
Total contribution = (P – VB) * Total number of units the firm sells
Total contribution = Total revenue – Total variable cost
Price*Total number Variable cost unit*Total number
of unit sells of unit sells
The total...

...Problem 1-14
Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each.
(a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be?
(F) Fixed Cost= $350.00
(V) Variable Cost= $8.00
(S) Selling Price= $15.00
(X) Number of Units Sold= 20
Revenues = (S)(X)
= (15)(20)
= $300.00
Total Variable Cost = (V)(X)
= (8)(20)
= $160.00
If Gina sells 20 shirts her total revenue will be $300.00 and her total variable cost will be $160.00.
(b) How many shirts must Gina sell to break even? What is the total revenue for this?
(F) Fixed Cost= $350.00
(V) Variable Cost= $8.00
(S) Selling Price= $15.00
(X) Number of Units Sold= ?
BEP=> 0=sX-f-vX
X=
X=
X= 50
Total Revenue = (S)(X)
= (15)(20)
= $750.00
Gina must sell 50 shirts to break even and she would have total revenue of $750.00.
Problem 1-17
Katherine D’ Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and...

...Harvard Business School
584-149
Rev. September 29, 1986
Basic QuantitativeAnalysis
for Marketing
Simple calculations often help in making quality marketing decisions. To do good “numbers
work,” one needs only a calculator, familiarity with a few key constructs, and some intuition about
what numbers to look at. This note has as its primary purpose the introduction of key constructs. The
development of intuition about what quantities to compute can begin with this note, but is best
accomplished by repeated analyses of marketing situations and application of the concepts and
techniques presented here. Case study analysis provides that opportunity.
The organization of the note is as follows. First we define key constructs such as variable cost,
fixed cost, contribution and margin. Following definition of these basic constructs, we discuss a most
useful quantity: the “break-even” volume. We show how to calculate and use this quantity in
marketing decision making.
Basic Terminology
As marketers, we are usually concerned with understanding the market or demand for the
product or service in question. However, if we are to assess the likely profit consequences of
alternative actions, we must understand the cost associated with doing business as well. For example,
consider a firm choosing a price for its new videocassette tape. The manager estimates weekly sales
for different prices to be
Weekly...

...PRACTICE QUESTIONS ON BREAK-EVEN ANALYSIS
1. A small firm intends to increase the capacity of a bottleneck operation by adding a new
machine. Two alternatives, A and B, have been identified and the associated costs and revenues
have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable
costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and
$16 for B.
a) Determine each alternative’s break-even point in units.
b) At what volume of output would the two alternatives yield the same profit?
c) If expected annual demand is 12,000 units, which alternative would yield the higher profit?
2. A manager must decide how many machines of a certain type to purchase. Each machine can
process 100 customers per hour. One machine will result in a fixed cost of $2,000 per hour while
two machines will result in a fixed cost of $3,800 per hour. Variable costs will be $20 per
customer and revenue will be $45 per customer.
a) Determine the break-even point for each scenario.
b) If estimated demand is 90 to 120 customers per hour, how many machines should be
purchased?
3. Manufacturing Inc. (MI) is considering the following two alternative technologies, differing in
terms of their fixed and variable costs, for producing its new product.
ALTERNATIVE A
Total
Variable
Fixed
Cost per
Cost/yr ($)
unit ($)
300,000
8
750,000
6
Output Range/year
0-200,000
200,000-400,000
ALTERNATIVE B
Total
Variable
Fixed...