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vi Brief Contents
Appendix C Poisson Probabilities 835
Appendix D Areas for the Standard Normal Distribution 841
Appendix E Values of e2λ 843
Appendix F References and Bibliography 844
Appendix G Self-Test Solutions and Answers to Even-Numbered

Problems 846
Index 909
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Contents
Preface xvii
Chapter 1 Introduction 1
1.1 Problem Solving and Decision Making 3
1.2 Quantitative Analysis and Decision Making 5
1.3 Quantitative Analysis 7
Model Development 7
Data Preparation 10
Model Solution 11
Report Generation 13
A Note Regarding Implementation 13
1.4 Models of Cost, Revenue, and Profit 14
Cost and Volume Models 14
Revenue and Volume Models 15
Profit and Volume Models 15
Breakeven Analysis 16
1.5 Quantitative Methods in Practice 17
Summary 19
Glossary 19
Problems 20
Case Problem Scheduling a Golf League 23
Chapter 2 Introduction to Probability 24

2.1 Experiments and the Sample Space 26
2.2 Assigning Probabilities to Experimental
Outcomes 28
Classical Method 28
Relative Frequency Method 29
Subjective Method 29
2.3 Events and Their Probabilities 30
2.4 Some Basic Relationships of Probability 31
Complement of an Event 31
Addition Law 32
Conditional Probability 35
Multiplication Law 39
2.5 Bayes’ Theorem 40
The Tabular Approach 43
2.6 Simpson’s Paradox 45
Summary 47
Glossary 48
Problems 49
Case Problem Hamilton County Judges 57
Case Problem College Softball Recruiting 59
viii Contents
Chapter 3 Probability Distributions 61

3.1 Random Variables 63
3.2 Discrete Random Variables 64
Probability Distribution of a Discrete Random Variable 64
Expected Value 66
Variance 67
3.3 Binomial Probability Distribution 69
Nastke Clothing Store Problem 70
Expected Value and Variance for the Binomial Distribution 73
3.4 Poisson Probability Distribution 73
An Example Involving Time Intervals 74
An Example Involving Length or Distance Intervals 74
3.5 Continuous Random Variables 76
Applying the Uniform Distribution 76
Area as a Measure of Probability 77
3.6 Normal Probability Distribution 80
Standard Normal Distribution 81
Computing Probabilities for Any Normal Distribution 85
Grear Tire Company Problem 87
3.7 Exponential Probability Distribution 88
Computing Probabilities for the Exponential Distribution 89
Relationship Between the Poisson and Exponential Distributions 90
Summary 91
Glossary 91
Problems 92
Case Problem Specialty Toys 99
Appendix 3.1 Computing Discrete Probabilities with Excel 100
Appendix 3.2 Computing Probabilities for Continuous Distributions
with Excel 101
Chapter 4 Decision Analysis 103

4.1 Problem Formulation 105
Influence Diagrams 106
Payoff Tables 106
Decision Trees 107
4.2 Decision Making Without Probabilities 109
Optimistic Approach 109
Conservative Approach 109
Minimax Regret Approach 110
4.3 Decision Making with Probabilities 112
Expected Value of Perfect Information 114
4.4 Risk Analysis and Sensitivity Analysis 116
Risk Analysis 116
Sensitivity Analysis 117
4.5 Decision Analysis with Sample Information 122
Influence Diagram 122
Decision Tree 123
Decision Strategy 125
Risk Profile 130
Contents ix
Expected Value of Sample Information 131

Efficiency of Sample Information 132
4.6 Computing Branch Probabilities with Bayes’ Theorem 133
Summary 137
Glossary 138
Problems 139
Case Problem 1 Property Purchase Strategy 153
Case Problem 2 Lawsuit Defense Strategy 154
Appendix 4.1 Using Analytic Solver Platform to Create Decision Trees 155
Chapter 5 Utility and Game Theory 164

5.1 The Meaning of Utility 165
5.2 Utility and Decision Making 167
The Expected Utility Approach 169
Summary of Steps for Determining the Utility of Money 171
5.3 Utility: Other Considerations 172
Risk Avoiders Versus Risk Takers 172
5.4 Introduction to Game Theory 177
Competing for Market Share 178
Identifying a Pure Strategy 180
5.5 Mixed Strategy Games 181
A Larger Mixed Strategy Game 183
Summary of Steps for Solving Two-Person, Zero-Sum Games 185
Extensions 185
Summary 185
Glossary 186
Problems 186
Case Problem Utility, Game Theory, and Product Line Extension Decisions 193
Chapter 6 Time Series Analysis and Forecasting 195

6.1 Time Series Patterns 197
Horizontal Pattern 197
Trend Pattern 199
Seasonal Pattern 201
Trend and Seasonal Pattern 203
Cyclical Pattern 204
Selecting a Forecasting Method 204
6.2 Forecast Accuracy 206
6.3 Moving Averages and Exponential Smoothing 211
Moving Averages 211
Weighted Moving Averages 214
Exponential Smoothing 215
6.4 Linear Trend Projection 218
6.5 Seasonality 223
Seasonality Without Trend 223
Seasonality with Trend 226
Models Based on Monthly Data 228
x Contents
Summary 229
Glossary 230
Problems 230
Case Problem 1 Forecasting Food and Beverage Sales 238
Case Problem 2 Forecasting Lost Sales 239
Appendix 6.1 Forecasting with Excel Data Analysis Tools 240
Chapter 7 Introduction to Linear Programming 249

7.1 A Simple Maximization Problem 251
Problem Formulation 252
Mathematical Model for the RMC Problem 254
7.2 Graphical Solution Procedure 255
A Note on Graphing Lines 264
Summary of the Graphical Solution Procedure for Maximization Problems 265
Slack Variables 266
7.3 Extreme Points and the Optimal Solution 268
7.4 Computer Solution of the RMC Problem 269
Interpretation of Answer Report 270
7.5 A Simple Minimization Problem 271
Summary of the Graphical Solution Procedure for Minimization Problems 273
Surplus Variables 274
Computer Solution of the M&D Chemicals Problem 275
7.6 Special Cases 276
Alternative Optimal Solutions 276
Infeasibility 276
Unbounded 278
7.7 General Linear Programming Notation 280
Summary 282
Glossary 283
Problems 284
Case Problem 1 Workload Balancing 299
Case Problem 2 Production Strategy 300
Case Problem 3 Hart Venture Capital 301
Appendix 7.1 Solving Linear Programs with Excel Solver 302
Appendix 7.2 Solving Linear Programs with LINGO 306
Chapter 8 Linear Programming: Sensitivity Analysis and

Interpretation of Solution 308
8.1 Introduction to Sensitivity Analysis 310
8.2 Objective Function Coefficients 311
8.3 Right-Hand Sides 314
Cautionary Note on the Interpretation of Shadow Prices 318
8.4 Limitations of Classical Sensitivity Analysis 319
Simultaneous Changes 319
Changes in Constraint Coefficients 320
Nonintuitive Shadow Prices 321
8.5 More Than Two Decision Variables 323
Modified RMC Problem 324
Bluegrass Farms Problem 326
Contents xi
8.6 Electronic Communications Problem 329

Problem Formulation 330
Solution and Interpretation 331
Summary 334
Glossary 335
Problems 336
Case Problem 1 Product Mix 355
Case Problem 2 Investment Strategy 356
Case Problem 3 Truck Leasing Strategy 356
Appendix 8.1 Sensitivity Analysis with Excel Solver 357
Appendix 8.2 Sensitivity Analysis with LINGO 358
Chapter 9 Linear Programming Applications in Marketing,

Finance, and Operations Management 362
9.1 Marketing Applications 364
Media Selection 364
Marketing Research 367
9.2 Financial Applications 370
Portfolio Selection 370
Financial Planning 373
9.3 Operations Management Applications 377
A Make-or-Buy Decision 377
Production Scheduling 381
Workforce Assignment 388
Blending Problems 393
Summary 397
Problems 398
Case Problem 1 Planning an Advertising Campaign 411
Case Problem 2 Schneider’s Sweet Shop 413
Case Problem 3 Textile Mill Scheduling 414
Case Problem 4 Workforce Scheduling 415
Case Problem 5 Duke Energy Coal Allocation2 417
Appendix 9.1 Excel Solution of Hewlitt Corporation Financial
Planning Problem 419
Chapter 10 Distribution and Network Models 424

10.1 Supply Chain Models 425
Transportation Problem 425
Problem Variations 428
A General Linear Programming Model 431
Transshipment Problem 432
10.2 Assignment Problem 440
10.3 Shortest-Route Problem 445
xii Contents
10.4 Maximal Flow Problem 449

10.5 A Production and Inventory Application 453
Summary 456
Glossary 457
Problems 458
Case Problem 1 Solutions Plus 475
Case Problem 2 Supply Chain Design for the Darby Company 477
Case Problem 3 DK Dental Care 478
Appendix 10.1 Excel Solver Solution of Transportation, Transshipment,
and Assignment Problems 480
Chapter 11 Integer Linear Programming 487

11.1 Types of Integer Linear Programming Models 489
11.2 Graphical and Computer Solutions for an All-Integer Linear Program 491
Graphical Solution of the LP Relaxation 492
Rounding to Obtain an Integer Solution 493
Graphical Solution of the All-Integer Problem 493
Using the LP Relaxation to Establish Bounds 494
Computer Solution 495
11.3 Applications Involving 0-1 Variables 496
Capital Budgeting 496
Fixed Cost 497
Supply Chain Design 499
Bank Location 504
Product Design and Market Share Optimization 506
11.4 Modeling Flexibility Provided by 0-1 Integer Variables 511
Multiple-Choice and Mutually Exclusive Constraints 511
k Out of n Alternatives Constraint 512
Conditional and Corequisite Constraints 512
A Cautionary Note About Sensitivity Analysis 514
Summary 515
Glossary 515
Problems 516
Case Problem 1 Textbook Publishing 527
Case Problem 2 Yeager National Bank 528
Case Problem 3 Production Scheduling with Changeover Costs 529
Case Problem 4 Applecore Children’s Clothing 530
Appendix 11.1 Excel Solver Solution of Integer Linear Programs 532
Appendix 11.2 LINGO Solution of Integer Linear Programs 535
Chapter 12 Advanced Optimization Applications 537

12.1 Data Envelopment Analysis 538
Evaluating the Performance of Hospitals 539
Overview of the DEA Approach 540
DEA Linear Programming Model 541
Summary of the DEA Approach 545
12.2 Revenue Management 546
Contents xiii
12.3 Portfolio Models and Asset Allocation 552

A Portfolio of Mutual Funds 552
Conservative Portfolio 553
Moderate Risk Portfolio 556
12.4 Nonlinear Optimization—The RMC Problem Revisited 559
An Unconstrained Problem 560
A Constrained Problem 561
Local and Global Optima 564
Shadow Prices 566
12.5 Constructing an Index Fund 568
Summary 572
Glossary 573
Problems 573
Case Problem CAFE Compliance in the Auto Industry 585
Appendix 12.1 Solving Nonlinear Problems with LINGO 587
Appendix 12.2 Solving Nonlinear Problems with Excel Solver 590
Chapter 13 Project Scheduling: PERT/CPM 592

13.1 Project Scheduling Based on Expected
Activity Times 593
The Concept of a Critical Path 595
Determining the Critical Path 596
Contributions of PERT/CPM 601
Summary of the PERT/CPM Critical Path Procedure 601
13.2 Project Scheduling Considering Uncertain
Activity Times 602
The Daugherty Porta-Vac Project 602
Uncertain Activity Times 603
The Critical Path 606
Variability in Project Completion Time 608
13.3 Considering Time–Cost Trade-Offs 611
Crashing Activity Times 612
Linear Programming Model for Crashing 614
Summary 617
Glossary 617
Problems 618
Case Problem R. C. Coleman 628
Appendix 13.1 Finding Cumulative Probabilities for
Normally Distributed Random Variables 629
Chapter 14 Inventory Models 631

14.1 Economic Order Quantity (EOQ) Model 633
The How-Much-to-Order Decision 637
The When-to-Order Decision 638
Sensitivity Analysis for the EOQ Model 639
Excel Solution of the EOQ Model 640
Summary of the EOQ Model Assumptions 641
xiv Contents
14.2 Economic Production Lot Size Model 642

Total Cost Model 643
Economic Production Lot Size 645
14.3 Inventory Model with Planned Shortages 645
14.4 Quantity Discounts for the EOQ Model 650
14.5 Single-Period Inventory Model with Probabilistic Demand 652
Neiman Marcus 653
Nationwide Car Rental 656
14.6 Order-Quantity, Reorder Point Model with Probabilistic Demand 658
The How-Much-to-Order Decision 659
The When-to-Order Decision 660
14.7 Periodic Review Model with Probabilistic Demand 662
More Complex Periodic Review Models 665
Summary 666
Glossary 666
Problems 667
Case Problem 1 Wagner Fabricating Company 675
Case Problem 2 River City Fire Department 676
Appendix 14.1 Development of the Optimal Order Quantity (Q*)
Formula for the EOQ Model 677
Appendix 14.2 Development of the Optimal Lot Size (Q*) Formula for the
Production Lot Size Model 678
Chapter 15 Waiting Line Models 680

15.1 Structure of a Waiting Line System 682
Single-Server Waiting Line 682
Distribution of Arrivals 682
Distribution of Service Times 684
Queue Discipline 685
Steady-State Operation 685
15.2 Single-Server Waiting Line Model with Poisson Arrivals and
Exponential Service Times 685
Operating Characteristics 685
Operating Characteristics for the Burger Dome Problem 687
Managers’ Use of Waiting Line Models 687
Improving the Waiting Line Operation 688
Excel Solution of Waiting Line Model 689
15.3 Multiple-Server Waiting Line Model with Poisson Arrivals and
Exponential Service Times 690
Operating Characteristics 690
Operating Characteristics for the Burger Dome Problem 692
15.4 Some General Relationships for Waiting Line Models 694
15.5 Economic Analysis of Waiting Lines 696
15.6 Other Waiting Line Models 698
15.7 Single-Server Waiting Line Model with Poisson Arrivals and
Arbitrary Service Times 699
Operating Characteristics for the M/G/1 Model 699
Constant Service Times 700
Contents xv
15.8 Multiple-Server Model with Poisson Arrivals, Arbitrary Service Times,

and No Waiting Line 701
Operating Characteristics for the M/G/k Model with Blocked
Customers Cleared 701
15.9 Waiting Line Models with Finite Calling Populations 703
Operating Characteristics for the M/M/1 Model with a Finite
Calling Population 704
Summary 706
Glossary 708
Problems 708
Case Problem 1 Regional Airlines 716
Case Problem 2 Office Equipment, Inc. 717
Chapter 16 Simulation 719

16.1 What-If Analysis 721
Sanotronics 721
Base-Case Scenario 721
Worst-Case Scenario 722
Best-Case Scenario 722
16.2 Simulation of Sanotronics Problem 723
Use of Probability Distributions to Represent Random Variables 723
Generating Values for Random Variables with Excel 725
Executing Simulation Trials with Excel 729
Measuring and Analyzing Simulation Output 730
16.3 Inventory Simulation 732
Simulation of the Butler Inventory Problem 735
16.4 Waiting Line Simulation 737
Black Sheep Scarves 738
Customer (Scarf) Arrival Times 738
Customer (Scarf) Service (Inspection) Times 739
Simulation Model 739
Simulation of Black Sheep Scarves 742
Simulation with Two Quality Inspectors 744
Simulation Results with Two Quality Inspectors 745
16.5 Simulation Considerations 747
Verification and Validation 747
Advantages and Disadvantages of Using Simulation 747
Summary 748
Glossary 749
Problems 750
Case Problem 1 Four Corners 757
Case Problem 2 Harbor Dunes Golf Course 759
Case Problem 3 County Beverage Drive-Thru 761
Appendix 16.1 Probability Distributions for Random Variables 762
Appendix 16.2 Simulation with Analytic Solver Platform 765
xvi Contents
Chapter 17 Markov Processes 770

17.1 Market Share Analysis 772
17.2 Accounts Receivable Analysis 779
Fundamental Matrix and Associated Calculations 781
Establishing the Allowance for Doubtful Accounts 782
Summary 784
Glossary 785
Problems 785
Case Problem Dealer’s Absorbing State Probabilities in Blackjack 790
Appendix 17.1 Matrix Notation and Operations 791
Appendix 17.2 Matrix Inversion with Excel 794
Appendix A Building Spreadsheet Models 796

Appendix B Binomial Probabilities 828
Appendix C Poisson Probabilities 835
Appendix D Areas for the Standard Normal Distribution 841
Appendix E Values of e2λ 843
Appendix F References and Bibliography 844
Appendix G Self-Test Solutions and Answers to Even-Numbered
Problems 846
Index 909
Preface
The purpose of this thirteenth edition, as with previous editions, is to provide undergraduate
and graduate students with a conceptual understanding of the role that quantitative methods
play in the decision-making process. The text describes the many quantitative methods
developed over the years, explains how they work, and shows how the decision maker can
apply and interpret them.
This book is applications-oriented and uses our problem scenario approach to gently
introduce quantitative material. In each chapter, a problem is described in conjunction with
the quantitative procedure being introduced. Development of the quantitative technique or
model includes applying it to the problem to generate a solution or recommendation. This
approach can help to motivate the student by demonstrating not only how the procedure
works, but also how it contributes to the decision-making process.
The mathematical prerequisite for this text is an algebra course. The two chapters on
probability and probability distributions will provide the necessary background for the use
of probability in subsequent chapters. Throughout the text we use generally accepted nota-
tion for the topic being covered. As a result, students who pursue study beyond the level of
this text will generally experience little difficulty reading more advanced material. To also
assist in further study, a bibliography is included at the end of this book.
CHANGES IN THE THIRTEENTH EDITION

We are very excited about the changes in the thirteenth edition of Quantitative Methods for
Business, and want to tell you about some of the changes we have made and why.
Updated Chapter 16: Simulation

The most substantial content change in this latest edition involves the coverage of simu-
lation. We maintain an intuitive introduction by continuing to use the concepts of best-,
worst-, and base-case scenarios, but we have added a more elaborate treatment of uncer-
tainty by using Microsoft Excel to develop spreadsheet simulation models. Within the
chapter, we explain how to construct a spreadsheet simulation model using only native
Excel functionality. In the chapter appendix, we describe how an Excel add-in, Analytic
Solver Platform, facilitates more sophisticated simulation analyses. This new appendix on
Analytic Solver Platform replaces the previous edition’s coverage of Crystal Ball, which
we no longer pair with our textbook. Nine new problems are introduced, and several others
have been updated to reflect the new simulation coverage.
Other Content Changes

A variety of other changes have been made throughout the text in response to user sugges-
tions. The most prominent of these include a new section on variability in project manage-
ment in Chapter 13, new Appendix A coverage of data tables and Goal Seek functionality
in Excel 2013, and adjustment of forecasting notation in Chapter 6. The software previously
used to create decision trees in the Chapter 4 appendix, TreePlan, has now been incorporated
into the Excel add-in Analytic Solver Platform, and we have updated Chapter 4 accordingly.
xviii Preface
New Q.M. in Action, Cases, and Problems

Q.M. in Action is the name of the short summaries that describe how the quantitative
methods being covered in the chapter have been used in practice. In this edition, you will
find numerous Q.M. in Action vignettes, cases, and homework problems. We have updated
many of these Q.M. in Actions to provide more recent examples. In all, we have added
15 new Q.M. in Actions.
The end of each chapter of this book contains cases for students. The cases are more
in-depth and often more open-ended than the end-of-chapter homework problems. We have
added three new cases to this edition: one on linear programming applications in Chapter
9, one on distribution and network models in Chapter 10, and one on integer programming
in Chapter 11. Solutions to all cases are available to instructors.
We have added more than 35 new homework problems to this edition. Many other
homework problems have been updated to provide more timely references.
FEATURES AND PEDAGOGY

We continued many of the features that appeared in previous editions. Some of the impor-
tant ones are noted here.
●
Annotations: Annotations that highlight key points and provide additional insights
for the student are a continuing feature of this edition. These annotations, which
appear in the margins, are designed to provide emphasis and enhance understanding
of the terms and concepts presented in the text.
●
Notes and Comments: We provide Notes and Comments at the end of many sections
to give the student additional insights about the methodology being discussed and
its application. These insights include warnings about or limitations of the method-
ology, recommendations for application, brief descriptions of additional technical
considerations, and other matters.
●
Self-Test Exercises: Certain exercises are identified as self-test exercises. Completely
worked-out solutions for these exercises are provided in Appendix G, entitled Self-
Test Solutions and Answers to Even-Numbered Problems, located at the end of the
book. Students can attempt the self-test problems and immediately check the solutions
to evaluate their understanding of the concepts presented in the chapter. At the request
of professors using our textbooks, we now provide the answers to even-numbered
problems in this same appendix.
●
Q.M. in Action: These articles are presented throughout the text and provide a sum-
mary of an application of quantitative methods found in business today. Adaptations
of materials from the popular press, academic journals such as Interfaces, and write-
ups provided by practitioners provide the basis for the applications in this feature.
ANCILLARY LEARNING AND TEACHING MATERIALS

For Students
Print and online resources are available to help the student work more efficiently as well
as learn how to use Excel.
●
LINGO: The student version of LINGO 14.0 software is available for download at
no additional cost to students who purchase a new text, through a link on the student
companion site.
Preface xix
●
Analytic Solver Platform: An educational version of the latest version of the
Analytic Solver Platform software is available at no cost with a new text.
For Instructors
Instructor ancillaries are now provided on the website. Included in this convenient format
are the following:
●
Solutions Manual: The Solutions Manual, prepared by the authors, includes solu-
tions for all problems in the text.
●
Solutions to Case Problems: Also prepared by the authors, it contains solutions to
all case problems presented in the text.
●
PowerPoint Presentation Slides: Prepared by John Loucks of St. Edwards University,
the presentation slides contain a teaching outline that incorporates graphics to help
instructors create even more stimulating lectures. The slides may be adapted using
PowerPoint software to facilitate classroom use.
●
Test Bank: Also prepared by John Loucks, the Test Bank in Microsoft Word files
includes multiple choice, true/false, short-answer questions, and problems for each
chapter.
Cengage Learning Testing Powered by Cognero is a flexible, online system that allows
you to:
●
author, edit, and manage test bank content from multiple Cengage Learning solutions
●
create multiple test versions in an instant
●
deliver tests from your LMS, your classroom, or wherever you want
COURSE OUTLINE FLEXIBILITY

The text provides instructors with substantial flexibility in selecting topics to meet specific
course needs. Although many variations are possible, the single-semester and single-
quarter outlines that follow are illustrative of the options available.
Suggested One-Semester Course Outline
Introduction (Chapter 1)
Probability Concepts (Chapters 2 and 3)
Decision Analysis (Chapters 4 and 5)
Forecasting (Chapter 6)
Linear Programming (Chapters 7, 8, and 9)
Distribution and Network Models (Chapter 10)
Integer Linear Programming (Chapter 11)
Advanced Optimization Applications (Chapter 12)
Project Scheduling: PERT/CPM (Chapter 13)
Simulation (Chapter 15)
Suggested One-Quarter Course Outline
Introduction (Chapter 1)
Decision Analysis (Chapters 4 and 5)
Linear Programming (Chapters 7, 8, and 9)
Distribution and Network Models (Chapter 10)
Integer Linear Programming (Chapter 11)
xx Preface
Advanced Optimization Applications (Chapter 12)

Project Scheduling: PERT/CPM (Chapter 13)
Simulation (Chapter 15)
Many other possibilities exist for one-term courses, depending on the time available, course
objectives, and backgrounds of the students.
ACKNOWLEDGMENTS
We were fortunate in having the thoughts and comments of a number of colleagues as we
began work on this thirteenth edition of Quantitative Methods for Business. Our apprecia-
tion and thanks go to:
Larry Barchett Edward Gordhammer Penina Orenstein

Ohio Valley University Embry-Riddle Aeronautical Seton Hall University
Stacie A. Bosley University Edward R. Sim
Hamline University Wendy Keyes Hardin-Simmons University
Gregory Chase California Baptist Rahmat Tavallali
West Liberty University University Walsh University
Ali A. Choudry Kenneth Lawrence John S. Watters
Embry-Riddle University New Jersey Institute McKendree University
of Technology
Mary Fletcher Susan M. L. Zee
Mount Mary University Holly S. Lutze Southeastern Louisiana
Texas Lutheran University University
Writing and revising a textbook is a continuing process. We owe a debt to many of our
colleagues and friends for their helpful comments and suggestions during the development
of earlier editions. Among these are the following:
Ellen Parker Allen Edward Baker Heidi Burgiel

Southern Methodist University of Miami Bridgewater State College
University Norman Baker Rodger D. Carlson
Gopesh Anand University of Cincinnati Morehead State University
The Ohio State University David Bakuli Ying Chien
Robert L. Armacost Westfield State College University of Scranton
University of Central Robert T. Barrett Renato Clavijo
Florida Francis Marion University Robert Morris University
Daniel Asera Oded Berman Ron Craig
University of Nevada, University of Toronto Wilfrid Laurier University
Las Vegas
Gary Blau Mary M. Danaher
Uttarayan Bagchi Purdue University Florida Atlantic University
University of Texas
at Austin William Bleuel Stanley Dick
Pepperdine University Babson College
Stephen Baglione
Saint Leo University Richard G. Bradford Swarna D. Dutt
Avila University State University of
Ardith Baker West Georgia
Oral Roberts University Thomas Bundt
Hillsdale College
Preface xxi
John Eatman Joseph Haimowitz Anil Kukreja

University of North Avila University Xavier University of
Carolina–Greensboro Nicholas G. Hall Louisiana
Ronald Ebert The Ohio State University Alireza Lari
University of Missouri– Michael E. Hanna Fayetteville State
Columbia University of Houston– University
Charlie Edmonson Clear Lake John Lawrence, Jr.
University of Dayton John Hanson California State
Don Edwards University of San Diego University–Fullerton
University of South William V. Harper Jodey Lingg
Carolina Otterbein College City University
Ronald Ehresman Melanie Hatch John S. Loucks
Baldwin-Wallace College Miami University St. Edwards University
Peter Ellis Harry G. Henderson Constantine Loucopoulos
Utah State University Davis & Elkins College Emporia State University
Lawrence Ettkin Carl H. Hess Donald R. MacRitchie
University of Tennessee Marymount University Framingham State College
at Chattanooga Larry Maes
Daniel G. Hotard
James Evans Southeastern Louisiana Davenport University
University of Cincinnati University Ka-sing Man
Paul Ewell, David Hott Georgetown University
Bridgewater College Florida Institute of William G. Marchal
Ephrem Eyob Technology University of Toledo
Virginia State University Woodrow W. Hughes Barbara J. Mardis
Michael Ford Jr., Converse College University of Northern Iowa
Rochester Institute of Christine Irujo Kamlesh Mathur
Technology Westfield State College Case Western Reserve
Terri Friel Barry Kadets University
Eastern Kentucky Bryant College Joseph Mazzola
University Duke University
Birsen Karpak
Phil Fry Youngstown State Timothy McDaniel
Boise State University University Buena Vista University
Christian V. Fugar William C. Keller Patrick McKeown
Dillard University Webb Institute of the University of Georgia
Robert Garfinkel University of Phoenix Constance McLaren
University of Connecticut Christos Koulamas Indiana State University
Alfredo Gomez, Florida International Mohammad Meybodi
Florida Atlantic University University Indiana University–
Bob Gregory M. S. Krishnamoorthy Kokomo
Bellevue University Alliant International John R. Miller
Leland Gustafson University Mercer University
State University of Melvin H. Kuhbander Mario Miranda
West Georgia Sullivan University The Ohio State University
xxii Preface
Joe Moffitt Donna Retzlaff-Roberts Dothang Truong

University of University of Memphis Fayetteville State University
Massachusetts Don R. Robinson Vicente A. Vargas
Saeed Mohaghegh Illinois State University University of San Diego
Assumption College Richard Rosenthal William Vasbinder
Herbert Moskowitz Naval Postgraduate School Becker College
Purdue University Kazim Ruhi Emre Veral
Shahriar Mostashari University of Maryland City University of
Campbell University– Susan D. Sandblom New York–Baruch
School of Business Scottsdale Community Elizabeth J. Wark
Alan Neebe College Springfield College
University of North Tom Schmidt John F. Wellington
Carolina Simpson College Indiana University–Purdue
V. R. Nemani Antoinette Somers University, Fort Wayne
Trinity College Wayne State University Robert P. Wells
William C. O’Connor Rajesh Srivastava Becker College
University of Montana– Florida Gulf Coast Laura J. White
Western University University of West Florida
Donald A. Ostasiewski Donald E. Stout, Jr. Edward P. Winkofsky
Thomas More College Saint Martin’s College University of Cincinnati
David Pentico Minghe Sun Cynthia Woodburn
Duquesne University University of Texas at Pittsburg State University
John E. Powell San Antonio Neba L J Wu
University of South Dakota Christopher S. Tang Eastern Michigan
B. Madhusudan Rao University of California– University
Bowling Green State Los Angeles Kefeng Xu
University Giri Kumar Tayi University of Texas at
Handanhal V. Ravinder State University of San Antonio
University of New Mexico New York–Albany Mari Yetimyan
Avuthu Rami Reddy Willban Terpening San Jose State University
University of Wisconsin Gonzaga University
Our associates from organizations who provided application write-ups made a major
contribution to the text. These individuals are cited in a credit line on the associated Q.M.
in Action.
We are also indebted to our product manager, Aaron Arnsparger; our marketing man-
ager, Heather Mooney; our senior content developer, Maggie Kubale; our content project
manager, Jana Lewis; our media editor, Chris Valentine; and others at Cengage Learning
for their counsel and support during the preparation of this text.
David R. Anderson
Dennis J. Sweeney
Thomas A. Williams
Jeffrey D. Camm
James J. Cochran
Michael J. Fry
Jeffrey W. Ohlmann
CHAPTER 1
Introduction
CONTENTS 1.4 MODELS OF COST,
REVENUE, AND PROFIT
1.1 PROBLEM SOLVING AND
Cost and Volume Models
DECISION MAKING
Revenue and Volume Models
1.2 QUANTITATIVE ANALYSIS Profit and Volume Models
AND DECISION MAKING Breakeven Analysis
1.3 QUANTITATIVE ANALYSIS 1.5 QUANTITATIVE METHODS
Model Development IN PRACTICE
Data Preparation Methods Used Most Frequently
Model Solution
Report Generation
A Note Regarding
Implementation
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of nerve of eye, 604
Paralytic affections of muscles, 332
treatment of, 332
Paraphimosis, 1005
Parasitic affections of muscles, 332
cysts of orbit, 593
diseases of bone, 432
Parathyroids, diseases of, 710
Parenchymatous exudates, 23
Parietal abscess, 569
thrombosis, 35
Park’s club-foot brace, 469
operation for hernia, 905
Paroöphoritic cysts, 260
Parovarian cysts, 260
Patella, dislocations of, 543
treatment of, 543
fractures of, 516
treatment of, 517
Pelvic hernia, 897
Pelvis, fractures of, 507
treatment of, 508
rachitic, deformities of, 162
Penis, absence of, 1004
amputation of, 1010
balanitis of, 1005
balanoposthitis, 1005
congenital defects of, 1004
dislocation of, 1008
double, 1004
elephantiasis of, 370
epithelioma of, 1010
fracture of, 1008
gumma of, 1009
herpes of, 1009
injuries of, 1008
misplacement of, 1004
paraphimosis of, 1005
phimosis of, 1004
posthitis of, 1005
warts of, 1009
Peptic ulcer of jejunum, 816
Perforating ulcer of foot, 310
Perforations of biliary passages, 921
symptoms of, 922
treatment of, 922
of esophagus, 742
Peri-appendicular abscess, 860
Peri-arteritis, 338
Peri-articular cold abscess, treatment of, 399
Pericanalicular adenofibroma, 285
Pericarditis, 733
Pericardium, cardicentesis of, 336
paracentesis of, 336
Perichondritis, 683
Perigastritis, 804
Perilaryngeal abscess, 704
Perilymphangitis, 374
Perineal abscess, 1013
treatment of, 1013
fistulas, 1013
treatment of, 1013
hernia, 897
lithotomy, 990
prostatectomy, 999
Perinephritis, 961
symptoms of, 961
treatment of, 961
Periostitis, acute, 548
infectious, 420
causes of, 421
treatment of, 421
albuminosa, 421
of jaw, 667
Peripheral nerves, diseases and injuries of, 622
Perirectal abscess, 879
treatment of, 879
Peritheliomas, 275
Peritoneum, diseases of, 785
tuberculosis of, 116, 118
Peritonitis, 785
circumscribed, 786
classification of, 786
consecutive, 786
diagnosis of, from appendicitis, 857
diffuse, 786
following abdominal operations, 780
intestinal obstruction from, 833
prevention of, 251
putrid, 786
symptoms of, 786
traumatic, 786
treatment of, 787
tuberculous, 786, 790
ascitic, 791
fibrinoplastic, 791
treatment of, 791
ulcerative, 791
Peritracheal abscess, 704
Perityphlitic abscess, 860
Peri-urethritis, 149
Pes cavus, 471
Petroleum ether, 199
Phagedenic chancroid, 144
ulcers, 66
Phagocytosis, 30, 40
Pharyngeal diverticula, 262
Pharyngotomy, external, 664
subhyoid, 664
transhyoid, 664
Pharynx, adenoids of, 679
treatment of, 680
foreign bodies in, 673
treatment of, 673
malformations of, 671
Phimosis, 1004
Phlebectases, 364
Phlebitis, 361
acute, 361
chronic, 362
symptoms of, 362
treatment of, 363
mycotic, 90
obliterans, 362
sinus, 362, 571
Phleboliths, 36, 362, 364
Phlegmasia alba dolens, 362
Phlegmonous affections of rectum, 879
treatment of, 879
cholecystitis, acute, 920
erysipelas, 75, 93
gastritis, 804
symptoms of, 804
treatment of, 805
Phlegmons of abdominal wall, 783
of axilla, 751
of neck, 700, 703
diagnosis of, 703
treatment of, 703
Phosphorus necrosis of bone, 428
Phthisis, laryngeal, 684
Pigeon-breast, 162, 718
Piles, 364, 882
treatment of, 883
Pilonidal sinus, 635
Pirogoff’s amputation of leg, 1040
Pituitary adenomas, 285
Pleura, rupture of, 724
wounds of, 724
treatment of, 726
Pleurosthotonos, 100
Plexiform angioma, 278
neuroma, 280, 622
Pneumatocele of scalp, 545
treatment of, 546
Pneumocele, 725
Pneumonectomy, 750
Pneumonia, bacillus of, 54
erysipelatous, 95
secondary infection in, 167
Pneumopericardium, 337
Pneumotomy, 750
Poikilocytes, definition of, 29
Poisoning, arrow, 173
by bees, 172
by hornets, 172
ivy, 173
by lizards, 172
by scorpions, 172
by snake-bites, 171
by spiders, 172
by wasps, 172
Poliomyelitis, anterior, 477
Polycystic kidney, 969
Polycythemia, 29
Polyhydronephrosis, 972
Polymastia, 755
Polymazia, 755
Polyp, mucous, 283
Polypi, 276
laryngeal, 686
nasal, 677
rectal, 885
Polypoid degeneration, 678
Popliteal artery, ligation of, 360
Porencephalon, 580
in rickets, 162
Port-wine mark, 277
Posthitis, 1005
Postgonorrheal arthritis, 152, 392
of jaw, 667
Postoperative biliary fistulas, 917
cystitis, 985
hernia, 896
treatment of, 909
mania, 175
Pott’s disease, 444
causes of, 445
complications of, 446
diagnosis of, 448
laminectomy in, 637
prognosis of, 448
sequelæ of, 446
symptoms of, 445
treatment of, 448
by apparatus, 448
by forcible reduction, 450
Powell’s electric saw, 588
Prepatellar bursæ, 263
Procidentia, 881
treatment of, 882
Proctitis, 875
gonorrheal, 159, 875
symptoms of, 875
treatment of, 875
Profeta’s law in syphilis, 139
Prolapse of rectum, 881
treatment of, 882
Prolapsus cerebri, 566
prognosis of, 566
treatment of, 566
Pronated foot, 468
Propagated thrombosis, 36
Properitoneal hernia, 891, 897
Prostate, absence of, 994
cancer of, 1002
hypertrophy of, 995
diagnosis of, 996
symptoms of, 997
treatment of, 998
inflammation of, 994
operations on, 998
Prostatectomy, perineal, 999
suprapubic, 998
Prostatic adenoma, 285
Prostatitis, 150
acute, 994
chronic, 994
treatment of, 995
Prostatorrhea, 994, 1022
Protozoa, 56
Pruritus ani, 878
treatment of, 879
Psammoma, 271
Pseudocysts, 262
Pseudoleukemia, 32
Psoas abscess, 114
Ptosis, 604
Puerperal state, secondary infection in, 169
Punctured wounds, 213
Pus, absorption of, 62
bacterial determination of, as an indication to treatment, 57
blastomycetic, 56
clinical characteristics of, from different agencies, 57
encapsulation of, 62
formation, bacteria of, 51
facultative pyogenic, 53
obligate pyogenic, 52
ichorous, 59
pointing of, 58
sanious, 59
subfacial, collection of, 59
subperiosteal, collection of, 591
Pustular syphilides, 132
Pustulocrustaceous syphilides, 132
Putrid fever of Gaspard, 81
Pyarthrosis, metastatic forms of, 384
treatment of, 399
Pyelectomy, 976
Pyelitis, 956
symptoms of, 957
treatment of, 957
Pyelonephritis, 956
symptoms of, 957
treatment of, 957
Pyemia, 90
chronic, 92
idiopathic, 91
postmortem appearances of, 92
prognosis of, 92
pyarthrosis of, 92
spontaneous, 91
symptoms of, 91
treatment of, 92
wound, 92
Pylephlebitis, 362, 918
Pylorectomy, 813
Pyloric stenosis, operations for, 808
Pylorodiosis, 808
Pyloroplasty, 808
Finney’s, 810
Pylorus stenosis of, 799
symptoms of, 799
treatment of, 799
Pyogenic organisms, facultative, 53
obligate, 52
Pyonephrosis, 961, 972
treatment of, 961
Pyopericardium, 336
Pyorrhea alveolaris, 664
Pyosalpinx, diagnosis of, from appendicitis, 858
Pyothorax, 736
R
Racemose aneurysm, 344
Rachitis, 161. See Rickets.
Radesyge, 308
Radial artery, ligation of, 356
nerve, operations on, 623
Radicular odontomas, 281
Radium in treatment of cancer, 296
Radius and ulna, fractures of, 503
dislocations of, 536
fractures of, 502
treatment of, 504
lower end of, fractures of, 503
Railway spine, 628
Ranula, 261, 660
Rauschbrand, bacillus of, 55
Raynaud’s disease, 74
Rectal fistulas, 880
treatment of, 880
Rectovaginal fistula, 839
Rectum, abscesses around, 879
treatment of, 879
adenoma of, 885
atresia of, 872
cancer of, 886
treatment of, 887
congenital defects of, 872
ether narcosis by, 196
examination of, 871
fistula of, 880
treatment of, 880
imperforation of, 872
inflammation of, 875
injuries of, 874
invagination of, 881
treatment of, 882
phlegmonous affections of, 879
treatment of, 879
polypi of, 885
prolapse of, 881
treatment of, 882
strictures of, 877
treatment of, 877
syphilis of, 138
tumors of, 885
ulcers of, 876
catarrhal, 876
chancroidal, 876
symptoms of, 877
syphilitic, 876
treatment of, 877
tuberculous, 877
typhoid, 877
Reef-knot, 241
Regnoli-Billroth operation on tongue, 661
Reindeer tendons, sterilization of, 248
Renal abscess, 957
actinomycosis, 964
calculus, 965
diagnosis of, 965
symptoms of, 965
treatment of, 966
colic, 964
treatment of, 964
syphilis, 964
tuberculosis, 961
Repair, process of, 67
cells in, embryonal, 67
epithelioid, 67
formative, 67
giant, 68
granulation tissue in, 67
karyokinetic activity in, 68
scar formation in, 69
of wounds, 215
by first intention, 215
granulation tissue in, 215
by second intention, 216
by third intention, 216
Resection of esophagus, transthoracic, 745
of nerves, 613
Respiratory passages, burns of, 675
fractures of, 675
infection through, 49
injuries of, 675
malformation of, 671
treatment of, 671
wounds of, gunshot, 675
Retention cysts, 259
of urine, 982
Retina, detachment of, 604
glioma of, 595
Retromammary abscess, 757
Retroperitoneal hernia, 891, 897
Retropharyngeal abscess, 114, 682
Rhabdomyoma, 274, 277
Rheumatism, gonorrheal, 152
Rheumatoid arthritis, 387
Rhinoliths, 672
Rhinophyma, 313, 641
treatment of, 314
Rhinoplasty, 644
Rhinoscleroma, 308, 641
bacillus of, 54
Ribs, dislocations of, 529
fractures of, 491
symptoms of, 492
treatment of, 492
Rice-grain bodies, 322
Richet’s operation for blepharoplasty, 603
Richter’s hernia, 898
Rickets, 161
causes of, 161
cerebral conditions in, 162
congenital, 161
cranial, 547
deformities of bones in, 162
fetal, 161, 433
hydrocephalus in, 162
laryngismus stridulus in, 162
pathology of, 161
porencephalon in, 162
symptoms of, 162
treatment of, 162
Rider’s bone, 218, 331
Riedel’s lobe, 910
Riggs’ disease, 664
Rodent ulcers, 66, 67, 288
of auricle, 606
Roe’s operation for pug-nose, 645
“Rose, the,” 93. See Erysipelas.
Roseola syphilitica, 131
Rotz, 105. See Glanders.
Round-cell sarcoma, 273
Rovsing’s operation for gastroptosis, 813
Rubber tissue, sterilization of, 248
Rubefacients, 183
Ruptures of bladder, 981
of diaphragm, 721, 753
of esophagus, 741
of heart, 336, 732
of lung, 725
of muscles, 329
of pleura, 724
of stomach, 794
of trachea, 699
of veins, 363
S
Sabanejeff’s method of amputation of knee, 1044
Sacculated aneurysm, 339, 342
Sacro-iliac disease, 452
treatment of, 452
Saddle-nose, 489, 639, 644
Salivary calculi, 651
ducts, fistulas of, 649
glands, inflammation of, 649
tumors of, 650
Saphenous vein, internal, extirpation of, 366
Sapremia, 86
chronic, 87
treatment of, 87
symptoms of, 86
treatment of, 87
Sarcoma, 273
of abdominal wall, 784
alveolar, 274
angiosarcoma, 275
of bone, 441
treatment of, 441
chondrosarcoma, 274
cylindroma, 275
diagnosis of, from carcinoma, 293
endothelioma, 274
general characteristics of, 275
giant-cell, 274
of jaw, 668
of kidney, 969
of larynx, 687
of liver, 914
of lungs, 732
melanosarcoma, 275
myeloid, 274
of omentum, 935
of orbit, 593
osteosarcoma, 274
of pancreas, 953
round-cell, 272
of skin, 316
spindle-cell, 273
of spleen, 943
of thorax, 730
of thyroid, 712
Sardonic grin, 100
Sayre’s incision in excision of hip, 411
Scabbard trachea, 713
Scalds, 300
treatment of, 301
Scalp, cellulitis of, 545
erysipelas of, 545
hematoma of, traumatic, 218
pneumatocele of, 545
treatment of, 546
tumors of, 546
acquired, 546
benign, 546
congenital, 546
gaseous, 545
malignant, 546
Scapula, fractures of, 494
acromion process, 494
coracoid process, 495
surgical neck, 495
Scarlatina, secondary infection in 167
Sciatic nerve, operations on, 623
Scleroderma, 313
pathology of, 313
treatment of, 313
Sclerosis, cerebral, in rickets, 162
Scoliosis, 459
etiology of, 460
Scopolamine, 205
Scorbutus, infantile, 161
Scorpions, poisoning by, 172
Scrofula of joints, 393
Scrofuloderma, 306
Scrotal hernia, 895
Scrotum, elephantiasis of, 371
shortening of, 1021
Scurvy, 160
pathology of, 160
symptoms of, 160
treatment of, 160
Sebaceous adenomas, 285
cysts, 285
of skin, 310
horns, 283
Seborrheic warts, 312
Sédillot’s operation on tongue, 662
Semilunar cartilages, dislocations of, 543
Seminal vesiculitis, 1021
Septicemia, 87
cryptogenetic, 87
eruptions in, 88
gangrenous, 108
leukocytosis in, 88
postmortem evidences of, 88
spontaneous, 87
symptoms of, 88
treatment of, 89
ulcerative endocarditis in, 88
Septicopyemia, 90
Sequestration dermoids, 265
Sequestrum formation in bone, 429
treatment of, 429
Serous exudates, 23
Seton, counterirritation by, 184
Shingles, 728
Shock, 177
diagnosis of, 179
from gunshot wounds, 223
symptoms of, 179
treatment of, 179
types of, 179
Shoulder, amputation of, 1032
excision of, 409
-joint, dislocations of, 530
anterior, 530
diagnosis of, 532
downward, 530
posterior, 530
subclavicular, 531
subcoracoid, 531
subglenoid, 531
subspinous, 532
symptoms of, 532
treatment of, 532
Kocher’s method, 533
upward, 530
spica bandage of, 190
Sialoadenitis, 649
Sialolithiasis, 651
Sigmoidopexy, 870
Silk, sterilization of, 248
Silkworm gut, sterilization of, 248
Sincipital hydrencephalocele, 577
meningocele, 577
Singer’s nodes, 686
Sinus, 63
accessory craniofacial, operations on, 608
causes of, 63
congenital, 63
foreign bodies, 63
necrosed material, 63
preëxisting abscess, 63
traumatic destruction of tissues, 63
ethmoidal, operations on, 610
frontal, operations on, 609
intracranial, injuries of, 563
maxillary, operations on, 611
phlebitis, 362, 571
symptoms of, 571
pilonidal, 635
sphenoidal, operations on, 610
thrombosis, 570
diagnosis of, 570
prognosis of, 571
symptoms of, 570
treatment of, 573
treatment of, 63
Skin, actinomycosis of, 308
appendages of, 317
carcinoma of, 315
cylindroma of, 315
cysts of, 310
treatment of, 310
epithelioma of, 315
diagnosis of, 315
treatment of, 315
grafting, 187
Thiersch method, 188
hypertrophies of, 311
infection through, 48
infections of, acute, 304
chronic, 306
keratosis of, 314
treatment of, 314
lymphangioma of, 315
treatment of, 315
melanoma of, 316
treatment of, 317
sarcoma of, 316
syphilis of, 130, 308
tertiary, 133
tuberculosis of, 115, 306
tumors of, benign, 311
malignant, 315
vascular growth of, 314
treatment of, 314
xanthoma of, 314
Skull, acute osteomyelitis of, 548
periostitis of, 548
aplasia cranii, 547
atrophy of, 547
senile, 547
bones of, incomplete formation of, 547
congenital conditions of, 547
craniotabes, 547
depression of, 549
diseases of, non-inflammatory, 547
fractures of, 549, 552
of base, 556
diagnosis of, 557
prognosis of, 557
treatment of, 558
of vertex, 552
comminuted, 552
diagnosis of, 554
gunshot, 553
splintered, 552
treatment of, 555
necrosis of, 549
osteoma of, 548
rachitis of, 162
surgical anatomy of, 550
wounds of, incised, 552
penetrating, 552
Sloughing ulcers, 66
Smith, Stephen, method of amputation of knee, 1043
Snake-bites, 171
symptoms of, 171
treatment of, 171
Soft palate, malformations of, 671
Somnoform, 199
Sounds, bulbous, 155
Spasmotoxin, 98
Specific irritants in inflammation, 45
Spermatic cord, encysted hydrocele of, 1019
malignant diseases of, 1019
spermatocele, 1019
syphilis of, 1019
tuberculosis of, 1019
varicocele, 1019
treatment of, 1021
Spermatocele, 1019
Spermatorrhea, 1022
Sphacelus, 73. See Gangrene.
Sphenoidal sinus, operations on, 610
Sphygmomanometer, use of, 177
Spica bandage of groin, 189
of shoulder, 190
Spiders, poisoning by, 172
Spina bifida, 625
occulta, 626
treatment of, 626
Spinal column, diseases and injuries of, 625
sprains of, 628
treatment of, 629
cord, hemorrhages of, 625, 634
injuries of, differential diagnosis of, 635
syphilis of, 138
tumors of, 621
diagnosis of, 622
symptoms of, 621
treatment of, 622
wounds of, gunshot, 230, 624
penetrating, 624
meningocele, 625
Spindle-cell sarcoma, 274
Spine, arthritis deformans of, 388
cancer of, 462
caries of, 444
concussion of, 628
treatment of, 629
curvatures of, forward, 461
rotary, lateral, 459
etiology of, 460
prognosis of, 460
treatment of, 460
cysts of, 627
dislocation of, 631
treatment of, 632
fractures of, 629
diagnosis of, 629
injuries of, 629
differential diagnosis of, 635

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Quantitative Methods for Business 13th

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(eBook PDF) Statistics for Business Economics 12th by

(eBook PDF) Quantitative Methods for Business 13th

Statistics for Business & Economics 14e Edition David

Essentials of Statistics for Business & Economics 9th

Statistics For Business & Economics 13th Revised

Essentials of Modern Business Statistics with Microsoft

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(eBook PDF) Quantitative Methods for Business (Custom

Appendix C Poisson Probabilities 835

Appendix D Areas for the Standard Normal Distribution 841

Appendix E Values of e2λ 843

Appendix F References and Bibliography 844

Appendix G Self-Test Solutions and Answers to Even-Numbered

Chapter 2 Introduction to Probability 24

Chapter 3 Probability Distributions 61

Chapter 4 Decision Analysis 103

Expected Value of Sample Information 131

Chapter 5 Utility and Game Theory 164

Chapter 6 Time Series Analysis and Forecasting 195

Chapter 7 Introduction to Linear Programming 249

Chapter 8 Linear Programming: Sensitivity Analysis and

8.6 Electronic Communications Problem 329

Chapter 9 Linear Programming Applications in Marketing,

Chapter 10 Distribution and Network Models 424

10.4 Maximal Flow Problem 449

Chapter 11 Integer Linear Programming 487

Chapter 12 Advanced Optimization Applications 537

12.3 Portfolio Models and Asset Allocation 552

Chapter 13 Project Scheduling: PERT/CPM 592

Chapter 14 Inventory Models 631

14.2 Economic Production Lot Size Model 642

Chapter 15 Waiting Line Models 680

15.8 Multiple-Server Model with Poisson Arrivals, Arbitrary Service Times,

Chapter 16 Simulation 719

Chapter 17 Markov Processes 770

Appendix A Building Spreadsheet Models 796

CHANGES IN THE THIRTEENTH EDITION

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New Q.M. in Action, Cases, and Problems

FEATURES AND PEDAGOGY

ANCILLARY LEARNING AND TEACHING MATERIALS

COURSE OUTLINE FLEXIBILITY

Advanced Optimization Applications (Chapter 12)

Larry Barchett Edward Gordhammer Penina Orenstein

Ellen Parker Allen Edward Baker Heidi Burgiel

John Eatman Joseph Haimowitz Anil Kukreja

Joe Moffitt Donna Retzlaff-Roberts Dothang Truong

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