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Final Exam - Decision Analytics

Excel Solver was used to find the optimal solution to a linear problem with constraints. Solver found a solution in 2 iterations over 0.016 seconds. The optimal solution was for the equipment to be paid over 12 months at a cost of $600. A decision tree analysis was also performed to evaluate options for a new alarm system based on the probability and costs of theft versus no theft.

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Dara Clarize Romatico
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53 views

Final Exam - Decision Analytics

Excel Solver was used to find the optimal solution to a linear problem with constraints. Solver found a solution in 2 iterations over 0.016 seconds. The optimal solution was for the equipment to be paid over 12 months at a cost of $600. A decision tree analysis was also performed to evaluate options for a new alarm system based on the probability and costs of theft versus no theft.

Uploaded by

Dara Clarize Romatico
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Microsoft Excel 16.

0 Answer Report
Worksheet: [Book1]Examination Activity
Report Created: 7/8/2023 2:49:45 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.016 Seconds.
Iterations: 2 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Central
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Value Of)


Cell Name Original Value Final Value
$B$7 No. of months to pay for equipment $ 800.00 $ 12.00

Variable Cells
Cell Name Original Value Final Value Integer
$B$3 Cost of new equipment $ 40,000.00 $ 600.00 Contin
$B$4 Projected clients per month 50 50 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$B$3 Cost of new equipment $ 600.00 $B$3=$B$3 Binding 0
$B$7 No. of months to pay for equipment $ 12.00 $B$7=12 Binding 0
$B$4 Projected clients per month 50 $B$4<=50 Binding 0
NEW SERVICE ANALYSIS

Cost of new equipment $ 600.00


Projected clients per month 50
Cost per service 1

No. of months to pay for equipment $ 12.00 = 12

1. Why Linear Programming is important?


Because it is a method of optimization for a linear objective function and a set of linear constraints. It is a way of achieving the

2. Is excel solver
completes easy tothrough
calculations understand? And why?
an iterative manner. Iteration is the procedure by which Excel Solver makes an effort at a solu
aints. It is a way of achieving the best outcome.

Solver makes an effort at a solution, reviews the results, makes another try, and so on.
Probability of theft Cost
Option 1: repair alarm system 0.05 5000
Option 2: install new alarm system 0.01 20000
Option 3: keep old alarm system 0.4 0
Jewelry's value 15000

20150
0.05
Theft
20000
Option 1 :repair alarm system 15000 20000

5000 5750 0.95


No theft
5000
0 5000

0.01
Theft
35000
Option 2 : install new alarm system 15000 35000

20000 20150 0.99


No theft
20000
0 20000

0.4
Theft
15000
Option 3 :keep old alarm system 15000 15000

0 6000 0.6
No theft
0
0 0
1. Why decision tree is important
Considering that classification and regression issues employ this. With a root node, branches, internal n

2. How can you use Decision Tree Analysis in your future profession?
assist my future companies in making decisions and choosing the greatest outcomes for their co
node, branches, internal nodes, and leaf nodes, it has a hierarchy that resembles a tree.

est outcomes for their company.


colorful

ID
1
2
3
4
5
6
7
8
9
10
PARENT TYPE ROW COL LABEL VALUE PROP
3T 2 9 Theft 15000 0.05
3T 7 9 No theft 0 0.95
10 E 4 5 Option 1 5000 0.3333333
6T 12 9 Theft 15000 0.01
6T 17 9 No theft 0 0.99
10 E 14 5 Option 2 20000 0.3333333
9T 22 9 Theft 15000 0.4
9T 27 9 No theft 0 0.6
10 E 24 5 Option 3 0 0.3333333
0D 14 1 1

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