Practical Management Science book.
Chapter 2, Introduction to Spreadsheet Modeling, Page 64, Problem
thinking of opening a Broadway play, I love you, you’re Mediocre, Now Get
Better! It will cost $5 million” 5000000” to develop the show. There are 8
shows per week, and you project the show will run for 100 weeks. It costs $1000
to open the theater each night. Tickets sell for $ 50.00 and you earn an
average of $1.50 profit per ticket holder form concessions. The theater holds
800 and you expect 80% of the seats to be full.
your other assumption, how many weeks will the play have to run for you to earn
100% return on the plays development cost?
you other assumption, how does an increase in the percentage of the seats full
you other assumption, determine how a joint change in the average ticket price
and number of weeks the ply run influence the profit?
Formula auditing tool to show which cells in the spreadsheet are directly
affected by the percentage of seats full?
Data Analysis and Decision Making
Chapter10, Regression Analysis:
Estimation Relationships, Page 597, Case 10.2 Housing Price Structure in Mid
of single-family houses have been brisk in Mid City this year. This has
especially been true in older, more established neighborhoods, where housing is
relatively inexpensive compared to the new homes being built in the newer
neighborhoods. Nevertheless, there are also many families who are willing to
pay a higher price for the prestige of living in one of the newer
neighborhoods. The file uploaded Mid+City 2.xlsx for the second problem MidCity.xlsx
contains data on 128 recent sales in Mid City. For each sale, the file shows
the neighborhood (1, 2, or 3) in which the house is located, the number of
offers made on the house, the square footage, whether the house is made
primarily of brick, the number of bathrooms, the number of bedrooms, and the
selling price. Neighborhoods 1 and 2 are more traditional neighborhoods, whereas
neighborhood 3 is a newer, more prestigious neighborhood.
regression to estimate and interpret the pricing structure of houses in Mid
City. Here are some considerations.
Do buyers pay a
premium for a brick house, all else being equal?
Is there a
premium for a house in neighborhood 3, all else being equal?
Is there an
extra premium for a brick house in neighborhood 3, in addition to the usual
premium for a brick house?
For purposes of
estimation and prediction, could neighborhoods 1 and 2 be collapsed into a
single "older" neighborhood?
All tow problems needs to be solved on Excel Sheet with explanation for the answers in word doc. the data for second problem is attached.