Data Analysis and Decision Modelling
Added on 2023-06-07
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Running head: Data Analysis and Decision Modelling
Data Analysis and Decision Modelling
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Data Analysis and Decision Modelling
Student Name
Institution
Date
Data Analysis and Decision Modelling
Introduction
In a bid to increase its investment a and expand on the company revenue generation
Holiday Entertainment Corporation (HEC) have of late acquired a hotel which possess a
ground-floor casino, stage shows and a buffet dining. The senior managers of the firm are
interested in remoulding of the casino so as to optimise the income generated from it. The
objective of this report is therefore to give a recommendation on the financial impacts of the
alternatives that the management can put in place.
In reviewing the models, a number of issues will be taken into consideration. One is
the target market. This will entail the variety of consumers that the hotel expects to attract,
they are grouped into four categories: Pokies, gamers, high rollers and show guests. Each
type of customer has unique features which leads to a difference in revenue generation,
expenses incurred as well as side effects (Allen-Zhu & Orecchia, 2015).
Together with the consumer effects will also analyse the floor space utilisation in
verifying the available options.
Decision modelling
In a normal business operation, the managers face the pressure of having to act
quickly and make big decisions. This type of decisions is affected by several variables that
may induce mistakes. For instance, working with huge amounts of data, this means the
organization profits, the firm share value or even the jobs of several people are dependent on
the outcome of the managers choice. Due to this stressful part of decision making that can
cloud judgement of the decision makers, computer-based decision modelling have been
introduced. This way the managers are able to make precise decisions which considers all the
aspects of a big data.
As the business world becomes competitive managers are capturing big data that is
increasingly becoming hard if not impossible for human brains to break down. The decision
modelling software makes use of the big data and algorithms to accurately make predictions
and assist optimise the choices which otherwise would be confusing. Decision making by
human beings is occasionally affected by biasness and physical issues such as tiredness,
hunger and stress (Evans, 2018). Machines are not affected by these issues, this way the big
data and business modelling makes it easy for firms to make decisions using data without
being affected by the biasness that humans are prone to.
2
Introduction
In a bid to increase its investment a and expand on the company revenue generation
Holiday Entertainment Corporation (HEC) have of late acquired a hotel which possess a
ground-floor casino, stage shows and a buffet dining. The senior managers of the firm are
interested in remoulding of the casino so as to optimise the income generated from it. The
objective of this report is therefore to give a recommendation on the financial impacts of the
alternatives that the management can put in place.
In reviewing the models, a number of issues will be taken into consideration. One is
the target market. This will entail the variety of consumers that the hotel expects to attract,
they are grouped into four categories: Pokies, gamers, high rollers and show guests. Each
type of customer has unique features which leads to a difference in revenue generation,
expenses incurred as well as side effects (Allen-Zhu & Orecchia, 2015).
Together with the consumer effects will also analyse the floor space utilisation in
verifying the available options.
Decision modelling
In a normal business operation, the managers face the pressure of having to act
quickly and make big decisions. This type of decisions is affected by several variables that
may induce mistakes. For instance, working with huge amounts of data, this means the
organization profits, the firm share value or even the jobs of several people are dependent on
the outcome of the managers choice. Due to this stressful part of decision making that can
cloud judgement of the decision makers, computer-based decision modelling have been
introduced. This way the managers are able to make precise decisions which considers all the
aspects of a big data.
As the business world becomes competitive managers are capturing big data that is
increasingly becoming hard if not impossible for human brains to break down. The decision
modelling software makes use of the big data and algorithms to accurately make predictions
and assist optimise the choices which otherwise would be confusing. Decision making by
human beings is occasionally affected by biasness and physical issues such as tiredness,
hunger and stress (Evans, 2018). Machines are not affected by these issues, this way the big
data and business modelling makes it easy for firms to make decisions using data without
being affected by the biasness that humans are prone to.
2
Data Analysis and Decision Modelling
Furthermore, machines allow the parse of data which is otherwise too technical for the
human brains. The use of decision modelling tools is thus an encouraged way of making
more accurate decisions.
Discussion
Base Model
The first available option is the base model. In this case the floor space will be utilised
as follows; 5000 square feet will be devoted to buffet dining, another 5000 will be left for
show dining and dance area. This will leave the casino with an available space of 40000
square feet.
The objective of the case is to maximise the total revenue which comes from this
space. To obtain the total revenue will add the net revenue from each customer type. This is
the total income from a client less the expenses incurred (Koufogiannakis & Young, 2013). In
addition will add/subtract any amount lost due to the side effects.
When designing the model optimum revenue, a number of constraints will have to be
evaluated. The table given below gives a summary of the constraints.
Guest type Minimum Maximum
Pokies 600 800
Gamers 400 800
Show Guests 300 800
High Rollers 20 60
Also, the total number of guests should not exceed the floor capacity which is 1850
people.
Using the information above we used the excel solver add in to design a model that will
maximise the total net revenue generated by the HEC from the casino (Sierksma & Zwols,
2015).
By feeding all the information given into the solver add in the optimum revenue to be
generated from the model will be $ 739, 115. The table below gives a summary of the
revenue generation
Customers Pokies Gamers Show High
3
Furthermore, machines allow the parse of data which is otherwise too technical for the
human brains. The use of decision modelling tools is thus an encouraged way of making
more accurate decisions.
Discussion
Base Model
The first available option is the base model. In this case the floor space will be utilised
as follows; 5000 square feet will be devoted to buffet dining, another 5000 will be left for
show dining and dance area. This will leave the casino with an available space of 40000
square feet.
The objective of the case is to maximise the total revenue which comes from this
space. To obtain the total revenue will add the net revenue from each customer type. This is
the total income from a client less the expenses incurred (Koufogiannakis & Young, 2013). In
addition will add/subtract any amount lost due to the side effects.
When designing the model optimum revenue, a number of constraints will have to be
evaluated. The table given below gives a summary of the constraints.
Guest type Minimum Maximum
Pokies 600 800
Gamers 400 800
Show Guests 300 800
High Rollers 20 60
Also, the total number of guests should not exceed the floor capacity which is 1850
people.
Using the information above we used the excel solver add in to design a model that will
maximise the total net revenue generated by the HEC from the casino (Sierksma & Zwols,
2015).
By feeding all the information given into the solver add in the optimum revenue to be
generated from the model will be $ 739, 115. The table below gives a summary of the
revenue generation
Customers Pokies Gamers Show High
3
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