Quickie Sales Corporation

You work in marketing for a company that produces work boots. Quality control has sent you a memo detailing the length of time before the boots wear out under heavy use. They find that the boots wear out in an average of 208 days, but the exact amount of time varies, following a normal distribution with a standard

A business wants to estimate the true mean annual income of its customers.  It randomly samples 220 of its customers.  The mean annual income was $61,400 with a standard deviation of $2,200.  Find a 95% confidence interval for the true mean annual income of the business’ customers.

* If we surmise that the company’s specialist’s predictions of 4% on market growth along with renewing current and or adding more customer contracts then the profits should be as follows:

9. Assume the weight, W, of a randomly selected adult has a normal distribution with a mean

Gene Denning, an employee of Welco Lumber Company, decided to run a study by videotaping a sample size of 365 logs being processed. However, actual data provided proved that it was a true sample size of only 362 logs, as data for logs # 30, 123, and 127 are missing from his report. He videotaped 3 operators, April, Sid, and Jim, marking the logs, how each log was broken down and the degree to which the cants were properly centered. Gene then did a comparison of what the cost was of the log in its current condition (actual value), to what would have been the correct value of the log if the cut had been

A. The simulated function given in the Excel spreadsheet “Hamptonshire Express: Problem_#1” allows the user to find the optimal quantity of newspapers to be stocked at the newly formed Hamptonshire Express Daily Newspaper. Anna Sheen estimated the daily demand of newspapers to be on a normal standard distribution; stating that daily demand will have a mean of 500 newspapers per day with a standard deviation of 100 newspapers per day. Using the function provided, the optimal stocking quantity, which maximizes expected profit, is determined to be approximately 584 newspapers. If 584 newspapers were to be ordered, Hamptonshire Express will net an

For the Motorking Corporation, the DSI tree estimates a profit of $1,885,137.50 in a strong economy and after subtracting the DSI fee of $20,000 leaves the corporation with $1,865,137.50 which is greater than $1,577,291 (This is Motorking’s Expected Value for Perfect Information). This proves that the Motorking should hire DSI to conduct a market survey.

30. The manager of the local National Video Store sells videocassette recorders at discount prices. If the store does not have a video recorder in stock when a customer wants to buy one, it will lose the sale because the customer will purchase a recorder from one of the many local competitors. The problem is that the cost of renting warehouse space to keep enough recorders in inventory to meet all demand is excessively high. The manager has determined that if 90% of customer demand for recorders can be met, then the combined cost of lost sales and inventory will be minimized. The manager has estimated that monthly demand for recorders is normally distributed, with a mean of 180 recorders and a standard deviation of 60. Determine the number of recorders the manager should order each month to meet 90% of customer demand.

Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.

a. Estimate the amount of revenue that Microsoft would have been reported in each year from 1996 through 1999 if Microsoft had not adopted its new revenue recognition policy in 1996.

However, the company expects that its sales will grow 25 percent annually for the next five years. As illustrated in Table 1 the demand after 5 years will be approx.

The O.M Scott & Sons Company has had continued success in the grass seed and lawn care industry. The company started in 1868 as a local company in central Ohio, focused on selling grass seed only. The company saw great opportunity in the lawn care industry, so it decided tot take action. O.M Scott & Sons grew into a national company that distributed its products by mail, and eventually sold to retail stores nationwide in 1959. The company was able to grow expanding the company’s field sales force. This increase in sales force led to a continued increase in sales and profits, which allowed the company to invest in R&D more heavily. This increase in R&D led to better products, which further increased sales and profits. The objective was to service the various retailers across the U.S with adequate inventories, especially in the high seasonal peaks. This was difficult for most of the smaller sized dealers the company was selling to, so Scott had to fund the dealer inventory buildup by itself.

The pro would be that Handy Andy, Inc. would no longer have to service the customer warranty. This would fall under the responsibility of the licensed retailers and the warranty they offer to customers. Besides that, they will also be able to get discount for 9% of the unit’s wholesale price, half paid by the licensed retailer that had made the sale and half paid by Handy Andy. However, the con in this situation could be that Handy Andy, Inc. imposes a manufacturer’s warranty, in which case they would have to settle on services of Handy Andy, Inc. Thus, anything regarding the services including problems after the services also need to done by factory distributors regardless of extra payments.

estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and

considering the degree of precision required and both quantitative and qualitative factors, Amanda believes that a difference between the expected amount