Compose a 10 to 12 page paper on the use of analytics and data from the textbook regarding today's business environment. You may follow the issues discussed in each question in the textbook or extend the discussion in any direction you choose, but be sure to submit a paper that clearly discusses and thoroughly documents your subtopics and use the specified data.Ensure your paper is well organized, proofread, and in A P A format. Please use section headings and make sure you have a minimum of 5 peer reviewed sources. You may select any TWO questions from the following list. Please also attach your Excel Worksheet to illustrate how you constructed your simulation model.

2. The following table lists a number of properties in a location popular as a vacation spot that have sold at auction.

1. What factors affect the winning bid?
2. Build a model to predict the winning bid.
3. What is the point prediction for the winning bid for a residential property coming up for auction on July 20, 2011, with an estimated value of $1,500,000?
4. Does this prediction change if there is a lot of interest in the property (that is, many bids are expected)?
5. Does the prediction change if the buyer is expected to be a non-resident?
6. What is the 95% prediction interval for the same property auction?

2. An advertisement in the newspaper offers a new car for sale or lease. The purchase price of the car is $43,240, or the car can be leased for 24 months for a monthly payment of $458, with a $7,500 down-payment. Under the lease option, there is a charge of 24 cents/mile for mileage above 30,000 miles for the 24 months, and a $550 security deposit, which is refundable at the end of the lease, must be deposited with the dealer. The car may be purchased at the end of the lease for $29,732. All other charges (taxes, maintenance, plates, etc.) are the same under both options. A. Develop a simulation model to compare the net present value of buying or leasing the car for 24 months. To compare the two options a number of assumptions must be made. Assume that: a. The mileage driven over 24 months can be approximated by an exponential distribution with mean 25,000 miles. b. The best estimate of the interest rate over the next 24 months is a normal distribution with mean 8.5% and standard deviation 1%. c. The value of the car at the end of 24 months is the same under both options (that is, if the car is purchased, the realizable value at the end of month 24 is $29,732 less 24 cents/mile for each mile over 30,000). B. Use your simulation model to assess the probability that the lease option results in a lower net present value that does the purchase option.

3. A car dealership can offer a $36,000 car under a special promotion with four years financing at 0%, or can offer a discount off the price of the vehicle if the buyer finances the sale at 0.5% monthly over the four years. What discount off the purchase price results in the buyer making the identical monthly payment under either purchase option?

4. A steel mill produces two types of steel alloy: boral and chromal. Production of each alloy requires three processes: Box anneal, Cold Roll, and Strand anneal. Production capacities are:

Box anneal:

4,000 hours/month

Cold Roll:

500 hours/month

Strand anneal:

1,000 hours/month

Production rates in tons per hour are:

Box anneal

Cold roll pass 1

Strand anneal

Cold roll pass 2

Boral

4

72

11

36

Chromal

2

Not required

20

24

The maximum demand for boral is 10,500 tons/month and for chromal 6,000 tons/month. The contributions/ton are boral: $25, and chromal: $35.

What combination of boral and chromal maximizes total monthly contribution?

5. The director of advertising for a retail chain is considering how to allocate her $200,000 budget for television advertising among four programs (A, B, C, D) on three channels (1, 2, 3). Market research studies have shown that the chain's customers can be broken down into two groups: "High-end Achievers" and "Aspiring Achievers." High-end Achievers spend twice as much in the store as Aspiring Achievers. The director wants to maximize the total in-store spending potential of the audience but must have at least three ads on each program, and cannot spend more than 50% of the budget on any one channel. The audience by program and the ad costs are:

1. What is the most effective ad purchase ignoring the fact that the number of ads on any one program must be integer?

2. Include an integer constraint on the number of ads and re-solve.

3. Compare the two solutions.