Devry BIAM300 2022 March Week 6 Lab Latest

BIAM300 Managerial Applications of Business Analytics

Week 6 Lab  

Scenario:

Your manager is considering selling products in a three new test markets. The manager wants to see what the probabilities are in each market and see what a decision tree looks like. The manager has given you the following information to put into your Palisade Precision Tree worksheet.

Probability          Probability                                         City        City

Markets               Success                Failure  Costs     Loss       Probability          Cost

Chicago                .32          .68          10,000   500         .35          25,000

Albuquerque     .46          .54          75,000   7,500     .42          35,000

Denver .22          .78          12,000   1,000     .33          62,000

Software Used: RStudio and Palisade Precision Tree found in the Azure virtual lab environment

Deliverable: Word document with two RStudio chart screen prints and one screen print of the decision tree made using Palisade Precision Tree (Excel add-on)

Step 1: Create Two (2) Decision Trees Using RStudio

Log into the Azure virtual lab environment and locate the RStudio icon. Select RStudio.

Complete the Example 6.4.1: Constructing and using a classification tree using RStudio. Screen print your code and the resulting chart. Paste your screen print into a new MS Word document.

Complete R-Practice 6.5.1: Constructing and using a regression tree. Screen print your code and resulting chart. Paste your screen print into a new MS Word document.

Step 2: Create Decision Tree Using Precision Tree

While logged into the Azure lab virtual environment, select the Palisade Precision Tree icon to use Palisade.

Use the scenario and probabilities listed in the scenario above to complete the decision tree.

Copy and paste the information into the Precision Tree (Excel) spreadsheet with curser in cell A1.

Select the decision tree tab at the top of the application.

Select the decision tree option on the toolbar at the left.

Choose the location of A9 ($A$9) that appears in the window and click OK.

In the precision tree window, name your new tree marketing test, and say OK.

Your decision tree has been created.

Select the blue triangle and see the window that appears.

Select the decision link.

Click the green plus at the top left to add a third branch, and click OK.

Select the box that says Branch 1 and label it Chicago. Do the same with Branch 2 and Branch 3.

Step 3: Finish the Decision Tree

It is now time to add the probabilities for each branch.

Select the blue triangle for Chicago and select chance, and click OK.

Label the Branch 1 success and Branch 2 failure.

Complete Albuquerque and Denver in the same way.

It is time to add the percentages.

Select the cell just above the Chicago success line where it says 50%. Type = and then select B3. Hit enter.

Do the same with the success and failure percentages for each city.

Select the cell below the Chicago success line where is says 0 and type = and select the costs number in D2. Continue to add each cities number in the same way.

Select the cell below the #Value line for Chicago and add = and select B7. Hit enter.

Do the same for Albuquerque and Denver.

Enter the city probability to each city and the city costs to each city.

Screen print your decision tree and add it to the two screen prints on your MS Word document.

Step 4: Report the Results

After the charts have been copied into MS Word, write one paragraph about the differences between using RStudio and Palisade Precision Tree so your manager can see the differences.

Step 5: Submit Work

Save and submit your MS Word document.