Question

I am wondering where the number 20 fits in the analysis: " Based on past experience, she can expect to sell an average 20 of these new bedroom suites a day at the state fair."

Sharron makes hand-made bedroom furniture, and will have a booth at the state fair. She will be selling furniture based on models shown at the fair. She is very excited about one new style of a bedroom suite (dresser-mirror, bed-frame, chest, 2 night stands) because it takes her half the time to make it compared to other styles. Not counting labor, it cost her 500 dollars to make this bedroom suite, and Sharron would like to sell the suite for 1,500 dollars. This is quite a bit of money, and so she would like to see if a selling trick would help her.

She wants to try two different selling tactics. First, sell it at 2,000 dollars, but then the salesman goes down to 1,500 after talking to the potential customer. The second approach would be to sell it at 2,000 dollars with a 25% “state fair” discount sign on the suite. Based on past experience, she can expect to sell an average 20 of these new bedroom suites a day at the state fair. Sharron will sell at the state fair for 16 days, and was thinking about using different selling tactics on different days (so alternate between the two tactics that way each tactic can be used for 8 days). As a statistical advisor, she would like your input into her plans on trying out different selling tactics, and help with analyzing the data.

Again:

I am wondering where the number 20 fits in the analysis: " Based on past experience, she can expect to sell an average 20 of these new bedroom suites a day at the state fair."

Answer 1