Question

A company knows from past experience that if they price their product at $15 the distribution of demand is as follows: 14% of the time demand is 158 , 23% of the time demand is 269, 35% of the time demand is 381, and demand is 427 the rest of the time. What is the expected level of demand? (please express your answer using 2 decimal places)

Answer #1

Quick Start Company makes 12-volt car batteries. After many
years of product testing, the company knows that the average life
of a Quick Start battery is normally distributed, with a mean of
45.4 months and a standard deviation of 7.7 months.
(a) If Quick Start guarantees a full refund on any battery that
fails within the 36-month period after purchase, what percentage of
its batteries will the company expect to replace? (Round your
answer to two decimal places.)
%
(b)...

The demand for Carolina Industries’ product varies greatly from
month to month. Based on the past two years of data, the following
probability distribution shows the company’s monthly demand: Unit
Demand Probability 300 0.20, 400 0.30, 500 0.35, 600 0.15
(a) If the company places monthly orders equal to the expected
value of the monthly demand, what should Carolina’s monthly order
quantity be for this product? Monthly order quantity =
(b) Assume that each unit demanded generates $70 in revenue...

The data below represent a demand schedule.
Product price quantity demanded
40 10
35 15
30 20
25 25
20 30
Determine the price elasticity of demand between each of the
following prices:
Instructions: Round your answers to 2 decimal
places. Enter your answers as positive values (absolute
values).
a. Between P1 = $40 and
P2 = $35, Ed =
b. Between P1 = $35 and
P2 = $30, Ed =
c. Between P1 = $30 and
P2 = $25,...

Orchard Relief is a product that is designed to improve sleep at
night. The company, Eli Orchard, is guessing that sales of the
product is somewhat related to sleeping patterns of customers over
the days of the week. Before mass production of the product, Eli
Orchid has market-tested Orchid Relief in only Orange County over
the past 8 weeks. The weekly demand is recorded. Eli Orchid is now
trying to use the sales pattern over the past 8 weeks to...

Orchard Relief is a product that is designed to improve sleep at
night. The company, Eli Orchard, is guessing that sales of the
product is somewhat related to sleeping patterns of customers over
the days of the week. Before mass production of the product, Eli
Orchid has market-tested Orchid Relief in only Orange County over
the past 8 weeks. The weekly demand is recorded. Eli Orchid is now
trying to use the sales pattern over the past 8 weeks to...

Williams Inc. produces a single product, a part used in the
manufacture of automobile transmissions. Known for its quality and
performance, the part is sold to luxury auto manufacturers around
the world. Because this is a quality product, Williams has some
flexibility in pricing the part. The firm calculates the price
using a variety of pricing methods and then chooses the final price
based on that information and other strategic information. A
summary of the key cost information follows. Williams...

Williams Inc. produces a single product, a part used in the
manufacture of automobile transmissions. Known for its quality and
performance, the part is sold to luxury auto manufacturers around
the world. Because this is a quality product, Williams has some
flexibility in pricing the part. The firm calculates the price
using a variety of pricing methods and then chooses the final price
based on that information and other strategic information. A
summary of the key cost information follows. Williams...

Tucson Machinery, Inc., manufactures numerically controlled
machines, which sell for an average price of $0.5 million each.
Sales for these NCMs for the past two years were as follows: Use
Exhibit 18.10.
LAST YEAR
THIS YEAR
QUARTER
QUANTITY
(UNITS)
QUARTER
QUANTITY
(UNITS)
I
11
I
14
II
18
II
23
III
25
III
27
IV
15
IV
21
a.
Find the equation of a simple
linear regression line using Excel. (Round your...

1. An online stock trading company makes part of their revenue
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important to the company to have an good idea of how many trades
its clients are making in a given year. In a sample of 111 clients
of an online stock trading company, the average number of trades
per year was 89 with a standard deviation of 18. If you were to
test the hypothesis that the average number...

You have been hired to test whether the demand for a product
that your client produces varies between two demographic markets –
the Urban and Rural markets.
As such, in each market, you run a short survey that gauges
customers demand for your product and assigns them to one of three
categories – (i) High (ii) Medium
or (iii) Low.
You survey 70 people in the “Urban” market and find that their
demand falls into the following “buckets”
High
32...

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