Business Analytics, 2e 365
Business Analytics (Evans)
Supplementary Chapter A Nonlinear and Non-Smooth Optimization
Use the table below to answer the following question(s).
Bolton Computer's
Laptop
Pricing Decision
Inputs
Price
Model
Sales -3.85 × price + 1150.9
Outputs
Total revenue sales × price
1) Bolton Computers are planning to release a new line of low-end laptops. Using Excel's Solver,
develop a nonlinear model to calculate the optimal price for the laptops, given that sales = -3.85
× price + 1150.9.
A) 342.40
B) 380.90
C) 719.70
D) 149.47
Answer: D
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
Copyright © 2016 Pearson Education, Inc.
,366 Supplementary Chapter A: Nonlinear and Non-Smooth Optimization
2) According to the nonlinear model, which of the following is the expected sales figure based
on the computed price?
A) 149.47
B) 719.7
C) 575.45
D) 500
Answer: C
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
3) According to the nonlinear model, which of the following is the total revenue expected from
the sales?
A) 22,340.91
B) 86,011.09
C) 107,571.78
D) 74,733.77
Answer: B
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
Copyright © 2016 Pearson Education, Inc.
, Business Analytics, 2e 367
Use the table below to create a nonlinear model based on the table to answer the following
question(s).
The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They
have three classes of tickets: Classic, Silver, and Gold. The table below provides information on
the average ticket sales, revenue and price elasticity on demand. They have a total seating
capacity of 300. The table also provides the price range within which they plan to reduce their
ticket rates.
Atlas Movie
Theater
Ticketing
Data
Ticket Class Current Average Elasticity Total Price Range
Rate Daily Seating
Sold Capacity
Classic $8.45 150 -1.5 300 $6.50 $7.50
Silver $13.25 80 -2 $11.50 $12.50
Gold $17.50 30 -1 $15.50 $16.50
4) According to the nonlinear model, what is the new price for Classic tickets?
A) $7.50
B) $12.45
C) $6.50
D) $8.20
Answer: A
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
5) According to the nonlinear model, what is the new price for Silver tickets?
A) $7.40
B) $12.17
C) $11.50
D) $12.50
Answer: B
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
Copyright © 2016 Pearson Education, Inc.
, 368 Supplementary Chapter A: Nonlinear and Non-Smooth Optimization
LO2: Use a modern software tool to perform statistical calculations.
6) According to the nonlinear model, what is the new price for Gold tickets?
A) $16.50
B) $15.50
C) $16
D) $16.11
Answer: A
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
7) According to the nonlinear model, which of the following is the projected sales figure for
Classic tickets at the new price?
A) 32
B) 90
C) 175
D) 202
Answer: C
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
8) According to the nonlinear model, which of the following is the projected sales figure for
Silver tickets at the new price?
A) 93
B) 178
C) 202
D) 101
Answer: A
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
9) According to the nonlinear model, which of the following is the projected sales figure for
Gold tickets at the new price?
A) 32
B) 90
C) 33
Copyright © 2016 Pearson Education, Inc.
Business Analytics (Evans)
Supplementary Chapter A Nonlinear and Non-Smooth Optimization
Use the table below to answer the following question(s).
Bolton Computer's
Laptop
Pricing Decision
Inputs
Price
Model
Sales -3.85 × price + 1150.9
Outputs
Total revenue sales × price
1) Bolton Computers are planning to release a new line of low-end laptops. Using Excel's Solver,
develop a nonlinear model to calculate the optimal price for the laptops, given that sales = -3.85
× price + 1150.9.
A) 342.40
B) 380.90
C) 719.70
D) 149.47
Answer: D
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
Copyright © 2016 Pearson Education, Inc.
,366 Supplementary Chapter A: Nonlinear and Non-Smooth Optimization
2) According to the nonlinear model, which of the following is the expected sales figure based
on the computed price?
A) 149.47
B) 719.7
C) 575.45
D) 500
Answer: C
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
3) According to the nonlinear model, which of the following is the total revenue expected from
the sales?
A) 22,340.91
B) 86,011.09
C) 107,571.78
D) 74,733.77
Answer: B
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
Copyright © 2016 Pearson Education, Inc.
, Business Analytics, 2e 367
Use the table below to create a nonlinear model based on the table to answer the following
question(s).
The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They
have three classes of tickets: Classic, Silver, and Gold. The table below provides information on
the average ticket sales, revenue and price elasticity on demand. They have a total seating
capacity of 300. The table also provides the price range within which they plan to reduce their
ticket rates.
Atlas Movie
Theater
Ticketing
Data
Ticket Class Current Average Elasticity Total Price Range
Rate Daily Seating
Sold Capacity
Classic $8.45 150 -1.5 300 $6.50 $7.50
Silver $13.25 80 -2 $11.50 $12.50
Gold $17.50 30 -1 $15.50 $16.50
4) According to the nonlinear model, what is the new price for Classic tickets?
A) $7.50
B) $12.45
C) $6.50
D) $8.20
Answer: A
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
5) According to the nonlinear model, what is the new price for Silver tickets?
A) $7.40
B) $12.17
C) $11.50
D) $12.50
Answer: B
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
Copyright © 2016 Pearson Education, Inc.
, 368 Supplementary Chapter A: Nonlinear and Non-Smooth Optimization
LO2: Use a modern software tool to perform statistical calculations.
6) According to the nonlinear model, what is the new price for Gold tickets?
A) $16.50
B) $15.50
C) $16
D) $16.11
Answer: A
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
7) According to the nonlinear model, which of the following is the projected sales figure for
Classic tickets at the new price?
A) 32
B) 90
C) 175
D) 202
Answer: C
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
8) According to the nonlinear model, which of the following is the projected sales figure for
Silver tickets at the new price?
A) 93
B) 178
C) 202
D) 101
Answer: A
Diff: 2
Blooms: Apply
AACSB: Analytic Skills
Topic: Modeling and Solving Nonlinear Optimization Problems
LO1: Develop and solve nonlinear optimization models for different applications.
LO2: Use a modern software tool to perform statistical calculations.
9) According to the nonlinear model, which of the following is the projected sales figure for
Gold tickets at the new price?
A) 32
B) 90
C) 33
Copyright © 2016 Pearson Education, Inc.
