Grading Rubric for Case Study Assignments Criteria Good 20 Fair 15 Unacceptable 0 Score Substance 25% of grade Answers are meaningful and reflect insight and careful analysis of the issues posed; contains rich and fully developed ideas which are extremely well written and presented. Answers are meaningful and reflect insight and analysis of the issues posed; contains fully developed ideas which are well written and presented. Answers are vague and reflect sloppy analysis of the issues posed; needs further development. Answers lack any worthwhile analysis. Results & Predictions 25% of grade Mathematical results are correct and clearly stated and explained. Intelligent predictions are made with full support of the correct data results. Proper graphs used, which are accurate for given scenario. Neat and easy to read. Includes all applicable labels and characteristics of a good graph. Correct mathematical results are stated and partially explained. Predictions are made with some support of the correct data results. Some incorrect mathematical results. Predictions made with incorrect mathematical results of the data. No mathematical results are discussed. No intelligent predictions are made based on the data results. Proper graphs used, which are accurate for given scenario. Neat and easy to read. Some omitted applicable labels and characteristic of a good graph. Improper graph used for given scenario; omitted labels and characteristic of a good graph. No appropriate graphs used. Writing 25% of grade The usage of grammar, sentence structure, and spelling, are excellent. Citations (if any) are properly cited using proper APA formatting. The usage of grammar, sentence structure and spelling contain minimal errors. Citations (if any) are properly cited using proper APA formatting. Prose and grammar need significant revisions. Grammar, sentence structure, spelling and citations (if any) are unacceptable. Total The usage of grammar, sentence structure, and spelling are improper and needs some revision. Improper citation (if any) formatting. Graphs 25% of grade Excellent 25 Property Purchase Strategy Glenn Foreman, president of Oceanview Development Corporation, is considering submitting a bid to purchase property that will be sold by sealed bid auction at a county tax foreclosure. Glenn's initial judgment is to submit a bid of $5 million. Based on his experience, Glenn estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for Oceanview. The current date is June 1. Sealed bids for the property must be submitted by August 15. The winning bid will be announced on September 1. If Oceanview submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Glenn believes that a referendum could be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums. The sealed-bid procedure requires the bid to be submitted with a certified check for 10 percent of the amount bid. If the bid is rejected, the deposit is refunded. If the bid is accepted, the deposit is the down payment for the property. However, if the bid is accepted and the bidder does not follow through with the purchase and meet the remainder of the financial obligation within six months, the deposit will be forfeited. In this case, the county will offer the property to the next highest bidder. To determine whether Oceanview should submit the $5 million bid, Glenn conducted some preliminary analysis. This preliminary work provided an assessment of 0.3 for the probability that the referendum for a zoning change will be approved and resulted in the following estimates of the costs and revenues that will be incurred if the condominiums are built: If Oceanview obtains the property and the zoning change is rejected in November, Glenn believes that the best option would be for the firm not to complete the purchase of the property. In this case, Oceanview would forfeit the 10 percent deposit that accompanied the bid. Because the likelihood that the zoning referendum will be approved is such an important factor in the decision process, Glenn suggested that the firm hire a market research service to conduct a survey of voters. The survey would provide a better estimate of the likelihood that the referendum for a zoning change would be approved. The market research firm that Oceanview Development has worked with in the past has agreed to do the study for $15,000. The results of the study will be available August 1, so that Oceanview will have this information before the August 15 bid deadline. The results of the survey will be a prediction either that the zoning change will be approved or that the zoning change will be rejected. After considering the record of the market research service in previous studies conducted for Oceanview, Glenn developed the following probability estimates concerning the accuracy of the market research information: Managerial Report Perform an analysis of the problem facing the Oceanview Development Corporation, and prepare a report that summarizes your findings and recommendations. Include the following items in your report: 1. A decision tree that shows the logical sequence of the decision problem 2. A recommendation regarding what Oceanview should do if the market research information is not available 3. A decision strategy that Oceanview should follow if the market research is conducted 4. A recommendation as to whether Oceanview should employ the market research firm, along with the value of the information provided by the market research firm. Include the details of your analysis as an appendix to your report