Exam 8: Predictive Modeling and Analysis

Use the table below to answer the following question(s). In the spreadsheet below, there is data on the price, demand, quantity produced, and cost for an item.There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. $\begin{array} { | l | l | l | l | } \hline 1 & \text { A } & \text { B } & \text { C } \\\hline \hline & \text { Profit Model } & & \\\hline 3 & & & \\\hline 3 & \text { Data } & & \begin{array} { l } \text { What-If Demand } \\\text { Values }\end{array} \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price (\$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost (\$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost (\$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$ -Calculate the economic value of a loyal customer for a company given that the customer purchases, on an average, worth $43worth per visit and comes three times a year.The company's gross profit margin is 35 per cent with a customer defection rate of 0.4.

When are logarithmic functions used in predictive analysis?

How does a tornado chart help make sense of inputs in analyzing data and models?

Excel's Trendline feature cannot be used in modeling trends which include time variables.