An operations manager for a new hotel is in need of determining the optimum number of vans to purchase to shuttle guests to/from the airport. It will…

Linear programming is a business analytics technique that can lend itself to supporting these types of

business decisions. Linear programming is a mathematical method that optimizes the allocation of

limited resources to achieve a desired objective, subject to a set of constraints1. Linear programming

can help the operations manager to determine the optimum number of vans to purchase, the most

efficient routes and schedule to follow, and the minimum cost or time to shuttle guests to/from the

airport, by formulating a linear objective function and a system of linear inequalities that represent

the relevant variables, parameters, and restrictions2.

The other options are not correct business analytics techniques for these types of business

decisions. Factor analysis is a statistical method that reduces the dimensionality of a large set of

correlated variables into a smaller set of uncorrelated factors that explain the underlying structure or

patterns of the data3. Factor analysis can help the operations manager to identify the key factors

that influence the guest satisfaction or loyalty, but it cannot help to optimize the resource allocation

or efficiency. Regression is a statistical method that estimates the relationship between one or more

independent variables and a dependent variable. Regression can help the operations manager to

predict the demand or revenue of the hotel based on the variables such as season, price, or location,

but it cannot help to optimize the resource allocation or efficiency. K-means clustering is a machine

learning method that partitions a set of data points into a predefined number of clusters based on

the similarity or distance between the data points. K-means clustering can help the operations

manager to segment the guests into different groups based on their characteristics or p

,

but it cannot help to optimize the resource allocation or efficiency.

Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 532: Introduction to Business Data

Analytics: A Practitioner View, IIBA, 2019, p. 93: Guide to Business Data Analytics, IIBA, 2020, p. 54. :

Guide to Business Data Analytics, IIBA, 2020, p. 54. : Guide to Business Data Analytics, IIBA, 2020, p.

55. : Guide to Business Data Analytics, IIBA, 2020, p. 53. : Introduction to Business Data Analytics: A

Practitioner View, IIBA, 2019, p. 9. : Guide to Business Data Analytics, IIBA, 2020, p. 54. : Guide to

Business Data Analytics, IIBA, 2020, p. 54. : Guide to Business Data Analytics, IIBA, 2020, p. 55.