570 Discussion Board 2

Classmate #1 Donna Zuiderweg posted Dec 5, 2017 8:57 PM

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I felt that the applicability of this class to my current work environment became more real when we started to work on the regression models and linear programming. The exercise we did for class, when we had to develop and post about a regression model based upon our work, was the first time I had ever actively connected the idea of a predictive analytical model being useful in a fundraising setting. I often look at financial results and we often attempt to forecast fundraising results for next month/quarter/year based upon what has been raised before but I’d never considered trying to predict a fundraising gift based upon independent variables that are known to us. It actually made gifts seem more concrete. Instead of basing a donor’s gift on the more nebulous idea of “if they like us enough they will want to give” and changed it to a more proactive scenario where we can test – if we do XYZ, will that increase the likelihood of a gift? Once our year end numbers are in, we are going to refine the regression I proposed in my post and try to test it and see if there are correlations that can be helpful as we plan for an upcoming campaign.

In addition to the regression models, I thought the linear programming section of the class was very interesting and had important relevance to my work environment. I had never used the Solver software application before so that is a new and useful tool. In the variety of examples that were presented, the media selection application is something that I can see using in the future. Compared to much smaller nonprofit organizations, the Zoo has a fairly robust marketing budget that we have to deploy across a variety of advertising channels and in a number of different markets. For the most part, we have an agency that helps us to put together the right marketing-mix but in some cases we have set aside a modest budget in order to test secondary markets. In 2018, we’ll promote weekend visits regionally and I could definitely see using linear programming to identify how we can maximize those limited dollars to put together a multi-channel ad campaign that reaches our targeted demographic in a specific market.

The other linear programming application that I could see being useful in the future is Employee Scheduling. The Customer Relations department has to juggle both full time and seasonal employees to keep our membership office staffed during our open hours. I plan to learn more about whether or not they currently have a model for scheduling or if a linear programming model is something that could make it easier.

Classmate #2

Victoria Rosengarten posted Dec 4, 2017 10:29 AM

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There are many practical uses for the in depth analytical calculations that we have covered this semester. Just as the use of the different methods vary, so does the value of the usage of these calculations. As mentioned in a previous post, I think the thing I found most shocking to learn this semester was that not all problems have an optimal solution, or may not have an optimal set up. Of course, I realize that perfection is not always an option, but was until we set up our own problems in the assigned homework where I realized just how much of an impact these varying terms could have on the solution.  In my current position at work, I do not act as a forecaster, so never go as deep into this sort of information as we have, but I do see how it directly fits into my role. As an underwriter, I am the fulfiller of a pre-solved quantitative business analysis of customers. Just like with our formulas, the information used to qualify a customer is based on historical earnings. By doing this, we can predict what the future earnings will be, using caution where needed, as the algorithm would allow. Now knowing more on how to formulate these predictive analyses, I feel I have a better understanding of the core functions of my job.  Similarly, I anticipate I will continue to use these tools as my career advances, especially forecasting. Since I focus my efforts on the mortgage industry, being able to anticipate upcoming trends for home purchasing, market rates, population demands, etc. will be very important to be able to stay ahead of competition and remain competitive in an ever changing market. My hopes is to one day grow into a management position where this kind of knowledge and this tool will be frequently used.  Finally, I feel stronger about the use and set-up for these quantitative business analysis tools, which will carry along with my entire career, where it may take me. By grasping a deep understanding on constraints, I not only have the knowledge to run test, but also can analytically understand core decision making and problem solving. Being able to accurately and easily find an appropriate solution will be useful in the business setting, but are also an invaluable set of skills to have for everyday life.