Linear Programming Notes VII Sensitivity Analysis 1 Introduction When you use a mathematical model to describe reality you must make approximations. The world is more complicated than the kinds of optimization problems that we are able to solve. Linearity assumptions usually are significant approximations. Another important approximation comes because you cannot be sure of the data that you put into the model. Your knowledge of the relevant technology may be imprecise‚ forcing you to approximate
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1. How sensitive is Db to s? To N? Db is the particular measure of species richness and it decreases when s (the number of different species) decreases. Db decreases when N (the number of individuals) increases. 2. How s and N affect the Simpson Index? Simpson Index is a measure of diversity which takes into account the number of species present‚ as well as the relative abundance of each species. In this case‚ a few rare species (s) with only a few representatives (N) will not affect the diversity
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Sensitivity analysis is a technique that indicates exactly how much a project’s profitability (NPV or IRR) will change in response to a given change in a single input variable‚ other things held constant. Sensitivity analysis begins with a base case developed using expected values (in the statistical sense) for all uncertain variables. Then‚ each uncertain variable is usually changed by a fixed percentage amount above and below its expected value‚ holding all other variables constant at their expected
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Sensitivity Analysis Source: Introduction to Management Science 10 e‚ Anderson Sweeney Williams Example 1 Max s.t. 5x1 + 7x2 x1 < 6 2x1 + 3x2 < 19 x1 + x2 < 8 x1‚ x2 > 0 x2 8 7 6 5 4 3 2 1 x1 + x2 < 8 Max 5x1 + 7x2 x1 < 6 Optimal: x1 = 5‚ x2 = 3‚ z = 46 2x1 + 3x2 < 19 x1 1 2 3 4 5 6 7 8 9 10 x2 8 7 6 5 4 3 2 1 5 5 Feasible Region 1 1 1 2 3 4 4 4 3 3 2 2 5 6 7 8 9 10 x1 Example 1 • Range of Optimality for c1 The slope of the objective
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Sensitivity Analysis The variables used to develop the table‚ including sales price‚ variable costs‚ unit sales‚ and the unit growth rate‚ are all most likely‚ or base-case‚ values‚ and the resulting $25‚517 NPV shown in Part 5 is called the base-case NPV. Now we ask a series of "what if" questions: "What if unit sales falls 30 percent below the most likely level?" In our sensitivity analysis we hold the other variables at their base case levels and then examine the situation when the key variables
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Assignment #3 BLAW 502 (Summer Class I‚ 2013): The Richard Spellman Case Total word count: 1724 1) Is there any need for Spellman to wade through the draft documents? (224 words) There is definitely the need for Richard Spellman to go through the draft documents. He needs to ensure that the employment deal that he had discussed with Walt Sawyer was in fact what the contract spelled out and that all information that has been exchanged informally‚ has been taken into consideration on the formal
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Patton-Fuller Sensitivity Analysis Carrie "Shellie" Cobbs Health Care Financial Accounting HCS 405 Robert Hammer November 17‚ 2013 Patton-Fuller Sensitivity Analysis Using Trend Analysis for Staffing According to Health Affairs‚ “Several trends in hospital use and staffing patterns have converged to create potentially hazardous conditions for patient safety” (Rogers‚ Hwang‚ Scott‚ Aiken‚ & Dinges‚ 2013‚ p. 1). Addressing the staffing is at Patton-Fuller Community Hospital is the current issue.
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TruEarth Healthy Foods: Market Research for a New Product Introduction TruEarth was founded in 1993 in St. Louis Missouri‚ by Gareth DeRosa‚ a young entrepreneur. The company was one of the first companies to focus on whole grain products. It provides high quality gourmet pastas‚ sauces and meals. In the third quarter of 2006‚ the company had launched a fresh whole grain pasta meal kit sold through supermarkets. It was the most successful product launch in the company history. The company is now
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Audience sensitivity is to be mindful of the different groups of diversities that are present in a crowd. When presenting to an audience either with a speech or in a meeting you need to know your audience. Knowing the audience will ensure that the message is delivered appropriately and that the audience will completely understands the message without any misunderstandings or confusion. There are many things to consider with audience sensitivity such as; age‚ gender‚ and also demographics. Another
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Foreign direct investment (FDI) is direct investment into production or business in a country by a company in another country‚ either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. Contents [hide] * 1 Definitions * 2 Types * 3 Methods * 4 Importance and barriers to FDI
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