Question

A cell phone salesman works for 8 hours per day. He has kept records of his...

A cell phone salesman works for 8 hours per day. He has kept records of his sales and has observed that he sells 9 Noktel cell phones per working day on average. (this is all the information given.)

The Salesman wants to balance his stock of Noktel cell phones. Excess inventory is expensive but he also wants to avoid running out of Noktel phones. How many Noktel phones must he have in stock tomorrow if he wants to be at least 95% sure he doesn’t run out of stock during the day tomorrow?

Homework Answers

Answer #1

We will use Poisson distribution to solve this question because we are given the average sale per working day. (whenever we are given average/rate/arrival-pattern we use poisson distribution)

We have,

Let X: Number of Noktel phones in stock for tomorrow

Then, Noktel phones he must have in stock tomorrow if he wants to be at least 95% sure he doesn’t run out of stock during the day are:

Now, if we check a poisson distribution table, we will find that for

Thus, the salesman must have 14 Noktel phones with him.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 5 (Solve by hand) A cell phone manufacturer has noticed that the number of faulty...
QUESTION 5 (Solve by hand) A cell phone manufacturer has noticed that the number of faulty cell phones detected in a production run only depends on the supervisor on duty and is detected according to a Poisson Process. There are only 2 supervisors: James and Russell, in the firm. The average number of faulty cell phones is two per day when James is on duty, while the average number of faulty cell phones is three per day when Russell is...
Bilbo owns a gas station. He refills his gas tank once a day early in the...
Bilbo owns a gas station. He refills his gas tank once a day early in the morning. Historical data show that daily demand at his gas station is relatively stable and has mean = 1000 gallons and standard deviation = 200 gallons. His gas tank has a capacity of holding up-to 3000 gallons of gasoline so that is not an issue. Holding gasoline will occupy financial resources, though, and therefore Bilbo does not want to hold too much gasoline in...
Jared is a 164 pound soccer player who trains two hours per day. He has a...
Jared is a 164 pound soccer player who trains two hours per day. He has a kcal requirement of approximately 3600 kcal per day. It is often said that an individual should take about _______ to _______ % of kcal as CHO. For an athlete, the absolute quantity of CHO rather than % of energy from CHO is important for exercise performance. Therefore, to determine Jared’s CHO need you should figure on _______ grams/kg body weight (based on hours and...
Instructions: Read the ethical scenario below and decide what course of action Will should take. In...
Instructions: Read the ethical scenario below and decide what course of action Will should take. In reaching a recommendation make sure you identify the ethical dilemma, offer two to three recommendations for solving it, and then select your best choice of action. Put yourself in Will’s shoes and decide what a business student should do in this situation. Use a minimum of two outside sources (the textbook can be one of them). Please make sure to type your report and...
Scott E. Miller, CPA, CVA has given an example of an expert witness in his article...
Scott E. Miller, CPA, CVA has given an example of an expert witness in his article entitled “You Got the Litigation Engagement, So Now What,” in The Value Examiner. Read his example and then prepare a list of mistakes that the expert made in his expert witnessing engagement. Let’s assume there is a CPA, Calvin P. Anderson. Calvin has been a practicing CPA for 15 years. He has a successful CPA firm providing a full range of traditional accounting and...
Elon Musk wasn’t smiling, when he said, “Welcome to Model 3 handover.” Through a single silver...
Elon Musk wasn’t smiling, when he said, “Welcome to Model 3 handover.” Through a single silver door, a few moments before, he had entered the room, flanked by nearly two dozen employees including an engineer and designer who joined him on stage. Black floor, rich red curtains, and slate grey backdrop and a white Tesla logo. There were no introductions necessary. At first, Musk’s voice had a breathy quality. He seemed nervous. Nerves were understandable on the precipice of what...
Case Study 1: A Day in the Life Rachel, the project manager of a large information...
Case Study 1: A Day in the Life Rachel, the project manager of a large information systems project, arrives at her office early to get caught up with work before her co- workers and project team arrive. However, as she enters the office she meets Neil, one of her fellow project managers, who also wants to get an early start on the day. Neil has just completed a project overseas. They spend 10 minutes socializing and catching up on personal...
Case Study 1:  A Day in the Life Rachel, the project manager of a large information systems...
Case Study 1:  A Day in the Life Rachel, the project manager of a large information systems project, arrives at her office early to get caught up with work before her co- workers and project team arrive. However, as she enters the office she meets Neil, one of her fellow project managers, who also wants to get an early start on the day. Neil has just completed a project overseas. They spend 10 minutes socializing and catching up on personal news....
1-How important do you believe it is to be task-oriented and relationship-orientated? How would you describe...
1-How important do you believe it is to be task-oriented and relationship-orientated? How would you describe Musk? 2-Why do you think Musk is successful in overcoming obstacles and handling conflict? How do you overcome obstacles in influencing individuals in your life? 3-Besides the personality traits given in chapter 2, what other traits attribute to a great leader? Recognizing Your Traits The definition of intelligence is the ability to acquire and apply knowledge and skills. Elon Musk knew little about rockets...
It had been a busy day for Marsha Chamberland. She had spent most of it cleaning...
It had been a busy day for Marsha Chamberland. She had spent most of it cleaning and running errands in prepara- tion for her brother-in-law Ed’s return, and now she was preparing a quick dinner for her family. Ed, an industry official whose job it was to decide whether or not new products needed premarket approval by the U.S. Food and Drug Administration, had spent the last two weeks in Tennessee expressing his views on genetic engineering in food. He...