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Location analysis is an important decision in operations management of production and service industries. A critical decision for many organizations is where to locate a

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Location analysis is an important decision in operations management of production and service industries. A critical decision for many organizations is where to locate a processing plant, warehouse, retail outlet, etc. A large number of business variables are typically considered in this decision problem. The management of a large motel/inn chain is aware of the challenges in choosing new motel locations. The chain's management uses the \"operating margin,\" which is the ratio of the sum of profit, depreciation, and interest expenses divided by total revenue, to make this type of decision. In general, the higher the \"operating margin,\" the greater the success of the motel/inn. The chain's management has collected data on 100 randomly selected of its current inns. By measuring the \"operating margin,\" the objective is to predict which sites would likely generate more profit. Below is a description of the different variables considered in this analysis. Location ID Number Location identifier Operating Margin Operating margin, in percent Number of motels, inns, and hotel rooms within 5 miles Nearest Number of miles to the closest competitors Enrollment Number of college and university enrollment (in thousands) in nearby college and universities Average household income (in thousands) of the neighborhood Distance Distance from downtown Quality The quality of the service level of the location (1 = bad, 2 = average, 3 = good, 4 = excellent) High Speed Internet High speed internet availability (1 = no, 2 = yes) Gym availability (1 = no, 2 = yes) The dataset is called Location Analysis. 0 ~

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