What to submit: Final submission must be ONE Excel file with answers to all above questions (one sheet per question).

Question 1: AT&T

AT&T is planning to introduce a new internet service in a certain region. The company is considering two options: Option A, which offers high-speed fiber optic internet, and Option B, which offers cutting-edge 5G wireless internet. The company has conducted market research to estimate the potential demand for each option based on three different scenarios: high demand, medium demand, and low demand. The estimated quarterly profits (in thousands of dollars) for each option and demand scenario are as follows:

Option	Demand for service
High	Medium	Low
Fiber	600	300	-200
5G	450	300	200

The probabilities for the demand is P(High) = 0.4,P(Medium) = 0.5, and P(Low) = 0.1, respectively.

a. Using the expected value approach, what is the recommended decision without perfect information? What is its expected value?

b. What is the expected value of perfect information?

c. A test market study of the potential demand for the service in that area is expected to report either a favorable (F) or unfavorable (U) condition. The relevant conditional probabilities are as follows:

P(F|High) = 0.8; P(U|High) = 0.2

P(F|Medium) = 0.5; P(U|Medium) = 0.5

P(F|Low) = 0.1; P(U|Low) = 0.9

Using the test market study, determine the decision strategy the airline should follow and the expected value of this strategy.

d. What is the efficiency of the information provided by the test market study?

Question 2: Emergency Room

The average weekly visits to an emergency room for each week (during the early days of the Covid pandemic) are given to us as follows:

Week	Visits
Week 1	12,356
Week 2	13,879
Week 3	11,987
Week 4	14,543
Week 5	16,275
Week 6	15,326
Week 7	12,987
Week 8	14,567
Week 9	17,543
Week 10	19,086

The ER manager is open to suggestions for forecasting models and decides to try both a linear trend model and an adjusted exponential smoothing model with an alpha of 0.5 and a beta of 0.2.

1. Generate forecasts for all 10 weeks using these techniques and then calculate forecast errors using MAD to determine which is the superior method in this scenario.
2. Using the superior method, what is the forecast for the next week (Week 11)?

Hint: For Question 2a, you need to generate a forecast for all 10 weeks using the techniques requested and then calculate forecast errors using MAD to determine which is the superior method

Question 3: Chick-fil-A

Chick-fil-A is considering changing its ordering system. In the current system, customers form separate lines in front of 4 order counters. The manager is contemplating implementing a single queue system, where customers wait in one line and proceed to the next available counter. If the average service time is 2 minutes and the average number of arrivals per hour is 100 customers, determine which system results in the lowest customer waiting time (the average time a customer spends waiting in the queue).

Hint: The current system consists of 4 single-server queues (and arrivals randomly will be divided between the queues), but the proposed system is a multiple-server queue with 4 servers. Please explain how to solve this is excel.