Exhibit 8.2 The Following Questions Pertain to the Problem and Spreadsheet Below

question 51

Essay

Exhibit 8.2
The following questions pertain to the problem and spreadsheet below.
A construction company just purchased a 300 × 300 foot lot upon which they plan to build an office building.They need at least 60,000 ft² of office floor space.Zoning regulations require each floor be 10 feet high and the building not exceed 65 ft in height.Further,parking space must equal at least 30% of the total floor space available.The company's cost accountant uses a 60% factor of the building height and a 1% factor of any story's floor area to calculate the total building cost in millions of dollars).
The following is the NLP formulation for the problem.
The spreadsheet implementation of this formulation applies to the following questions.

-Refer to Exhibit 8.2.What values would you enter in the Analytic Solver Platform task pane for the above Excel spreadsheet?
Objective Cell: Variables Cells: Constraints Cells:

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Definitions:

Least Squares Estimates

A statistical method used to determine the line of best fit by minimizing the sum of squares of the errors between observed and predicted values.

Slope

In mathematics and statistics, it represents the rate at which a line inclines or declines, showing the change in the dependent variable for a unit change in the independent variable.

Y-Intercept

The location at which a line or curve crosses the y-axis in a coordinate system.

Simple Linear Regression

A statistical method that examines the linear relationship between two continuous variables, using a straight line to model the relationship.