Orion Guidline and Answer

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Orion Bus: Individual Case Guideline Version 12.0 Individual Case Valued at 10 Points

Directions: Prior to start work, an in-class case discussion. Post your solutions on Blackboard

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Notes: 1. For the Orion Model, indicate the floor variable as High-floor. In other words, let 1 be high floor, and for Fuel, diesel is 1, i.e., if not a diesel, indicate with a zero. These are your two qualitative variables. 2. Confidence Level is 90%, therefore, level of significance is .10. 3. Orion wants all the model slopes to be statistically significant. 4. Round-off to two decimal places. 5. Note for the below Questions, Orion Bid is the same as the reference point price. 6. In regard to Question #1, if your model differs from optimum, you still can be correct on Qs 2-5 if you apply YOUR model correctly.

Questions 1-5

1. Identify your Orion model. Identify your intercept. Clearly indicate your independent variables and the slopes.

Y = ?

Intercept = -12883

Length= 1959.129

Cost= 0.812

LF/ HF = 8186.43

D/ ND = 10412.19

2. Find the Charlotte bid dated Feb. 19, 2002 for 15 low floor 30’ diesel buses. The winning bid was $273,658. And, Orion’s bid was $299,900. Applying your model, what would be the Orion bid per bus?

271,753.5

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3. A particular city wants to buy seven 40-foot, high floor, diesel-fueled buses that Orion estimates to cost $235,816. What will be Orion’s bid per bus?

275,563.4

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4. April 1, 2002, Orion did not win the City of Green Bay bid award. Orion’s bid was $249,500. In the event that the City of Green Bay put out a similar bid, what would be Orion’s bid price per bus? The 2002 bid was for 3 30’ LF Diesels. Orion’s cost is $232,105.

244,772.3...