Two construction companies are bidding against one another for the right to construct a new community center building in Bloomington, Indiana. The first construction company, Fine Line Homes, believes that its competitor, Buffalo Valley Construction, will place a bid for this project according to the distribution shown in the file P09_44.xlsx. Furthermore, Fine Line Homes estimates that it will cost $160,000 for its own company to construct this building. Given its fine reputation and long-standing service within the local community, Fine Line Homes believes that it will likely be awarded the project in the event that it and Buffalo Valley Construction submit exactly the same bids. Create a payoff table that lists the profit from each Fine Line bid and each competing bid, and use it to find the bid that maximizes Fine Line’s expected profit. Why is this an easier approach than a decision tree for this particular problem?

 

9-29. Model a set of typical family relationships— spouse, father, and mother—in a single 3NF relation. Also include the nonkey attributes name and birth date. Assume that each person has only one spouse, one father, and one mother. Show foreign keys with dashed underlining.

 

Local authority

(a) Identify and discuss briefly five assumptions underlying cost-volume profit analysis.

(b) A local authority, w hose area includes a holiday resort situated on the east coast, operates. for 30 weeks each year, a holiday home which is let to visiting parties of children in care from other authorities. The children are accompanied by their ow n house mothers who supervise them throughout the holiday. From six to fifteen guests are accepted on terms of £100 per person per week. No differential charges exist for adults and children. Weekly costs incurred by the host authority are:

Seasonal staff supervise and carry out the necessary duties at the home at a cost of £11,000 for the 30-week period. This provides staffing sufficient for six to ten guests per week but if eleven or more guests are to be accommodated, additional staff at a total cost of £200 per week are engaged for the whole of the 30-week period. Rent, including rates for the property, is £4,000 per annum and the garden of the home is maintained by the council's recreation department which charges a nominal fee of £1,000 per annum.

You are required to:

(i) tabulate the appropriate figures in such a way as to show the break-even point point(s) and to comment on your figures;

(ii) draw, on graph paper, a chart to illustrate your answer to (b) (i) above.

 

Consider a random censorship model in which failure time t is exponential with failure rate λ and censoring time C is exponential with rate a. Let  and D be the number of failures. Show that (V, D) is sufficient for (λ, α). Show further that V and D are independent, that D is binomial with parameters η and  distribution with 2D degrees of freedom. Discuss how inference on λ may be carried out.