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##### Week 4 & 6 Regression Problems

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Week 4 Problems;Complete the problems;4?22;The following data give the selling price, square footage, number of bedrooms, and age of houses that have sold in a neighborhood in the past 6 months. Develop three regression models to predict the selling price based upon each of the other factors individually. Which of these is best?;4?23 Use the data in Problem 4?22 and develop a regression model to predict selling price based on the square footage and number of bedrooms. Use this to predict the selling price of a 2,000?square?foot house with 3 bedrooms. Compare this model with the models in Problem 4?22. Should the number of bedrooms be included in the model? Why or why not?;4?24 Use the data in Problem 4?22 and develop a regression model to predict selling price based on the square footage, number of bedrooms, and age. Use this to predict the selling price of a 10?year?old, 2,000?square?foot house with 3 bedrooms.;Week 6 Problems;61 Action Items;1.Read the Political Candidate Case.;2.Answer the following items about the case;1.What is the Jim trying to optimize? Is he trying to maximize or minimize?;2.Write the objective function to support this analysis.;3.What inputs do you need to support your analysis?;4.Is there any extraneous data you have been given that you will not need?;5.What criteria has Jim given you to support the analysis?;3.Create a spreadsheet model that supports your analysis.;62 Action Items;1.Review the "Mexicana Wire Works" case study at the end of Chapter 7 in Quantitative Analysis.;2.Guidance;1. Identify the one key item you are attempting to optimize (this becomes your SET TARGET CELL location;in Solver).;2. Identify the ten constraints associated with the problem.;3. Note that case facts like "defective product is stored separately until it can be reworked" is not pertinent;whereas the April Orders chart is pertinent.;3.Complete the spreadsheet model and respond to the questions at the end of the case study.;6?3;Action Items;1.Review problem 7?37 in Chapter 7 of Quantitative Analysis.37) Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $200,000 for one of its clients. The client has stipulated that the money must be put into either a stock fund or a money market;fund, and the annual return should be at least $14,000. Other conditions related to risk have also been specified, and the following linear program was developed to help with this investment decision;total investment is;$200,000;return must be at least;$14,000;at least $40,000 must be in money market fund where invested in stock fund;M = dollars invested in money market fund;S = dollars;S,M ? 0;M ? 40,000;0.10S + 0.05M ? 14,000;S + M = 200,000;subject to;Minimize risk = 12S + 5M;The QM for Windows output is shown below.;(a) How much money should be invested in the money market fund and the stock fund? What is the total risk?;(b) What is the total return? What rate of return is this?;(c) Would the solution change if risk measure for each dollar in the stock fund were 14 instead of 12?;(d) For each additional dollar that is available, how much does the risk change?;(e) Would the solution change if the amount that must be invested in the money market fund were changed from $40,000 to $50,000?

Paper#35151 | Written in 18-Jul-2015

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