Suppose That a Bus Company Is Deciding Where to Locate

question 65

Essay

Suppose that a bus company is deciding where to locate its central hub.There are 6 possible destinations for the buses.Suppose that the center of town will be used as the reference for describing the possible destinations.A is located 5 miles South and 3 miles West.B is located 3 miles North and 2 miles East.C is located 1 mile South and 5 miles East.D is located 2 miles North and 3 miles West.E is located exactly in the center of town.F is located 10 miles North and 5 miles East.Assume that traffic to each destination will be equal.Where should the hub go so that travel time is minimized?

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Definitions:

Bid Price

The bid price is the highest price a buyer is willing to pay for a security or asset at a given time, crucial in the trading of stocks, bonds, and commodities.

Quoted Bid

The highest price a buyer is willing to pay for a security or commodity in the financial markets.

Treasury Note

A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years.

Dow Jones

A reference to either the Dow Jones Industrial Average (DJIA), a stock market index of 30 prominent companies in the U.S., or the company Dow Jones & Company, known for its financial market indices and news.