# States Data file

Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent gas station. Susan’s problem is to decide how large her station should be. The annual returns will depend on both the size of the station and a number of marketing factors related to oil industry and demand for gasoline. After careful analysis, Susan developed the following table:

a. Develop a decision table for this decision.

b. What is the Maximax decision?

c. What is the Maximin decision?

d. What is the criterion of realism decision? Use α = 0.6.

e. Develop an Opportunity Loss Table

f. What is the Minimax Regret Decision?

2. Data collected on the yearly demand for 50-pound bags of fertilizer at Sunshine Garden Supply are shown in the following table.

a. Develop a three-year moving average to forecast sales in year 12.

b. Develop a 3-year weighted average to predict demand in year 12, in which sales in the most recent year is given a weight of 2 and sales in the two years prior to that are each given a weight of 1.

c. Develop a regression/trend line to estimate the demand for fertilizer in year 12.

d. Based on the three forecasts you have created, which forecast is the most accurate?

3. KaplanCollege has decided to "wire" its campus. The first stage in this effort is to install the "backbone," i.e., to connect all the buildings. The table below gives the distances between the various buildings on campus in hundreds of feet

Name:

Directions:

In this project you will be using the States Data file that is found in Doc Sharing under the Instructor-Graded Projects:

Steps for accessing the States Data file:

Open your Excel with PhStat2

Click File—Open

Select the States Data file

Not all questions require the use of technology or the States Date file.

You may insert your answers, including any charts, graphs, or output, on this document.

Be sure to put your name on this document and save it to your computer.

a. Develop a decision table for this decision.

b. What is the Maximax decision?

c. What is the Maximin decision?

d. What is the criterion of realism decision? Use α = 0.6.

e. Develop an Opportunity Loss Table

f. What is the Minimax Regret Decision?

2. Data collected on the yearly demand for 50-pound bags of fertilizer at Sunshine Garden Supply are shown in the following table.

a. Develop a three-year moving average to forecast sales in year 12.

b. Develop a 3-year weighted average to predict demand in year 12, in which sales in the most recent year is given a weight of 2 and sales in the two years prior to that are each given a weight of 1.

c. Develop a regression/trend line to estimate the demand for fertilizer in year 12.

d. Based on the three forecasts you have created, which forecast is the most accurate?

3. KaplanCollege has decided to "wire" its campus. The first stage in this effort is to install the "backbone," i.e., to connect all the buildings. The table below gives the distances between the various buildings on campus in hundreds of feet

Name:

Directions:

In this project you will be using the States Data file that is found in Doc Sharing under the Instructor-Graded Projects:

Steps for accessing the States Data file:

Open your Excel with PhStat2

Click File—Open

Select the States Data file

Not all questions require the use of technology or the States Date file.

You may insert your answers, including any charts, graphs, or output, on this document.

Be sure to put your name on this document and save it to your computer.

You'll get a 370.4KB .ZIP file.