Suppose that a sales force has found 20 qualified buyers and has begun the sales process. The sales manager estimates that 10% eventually proceeds to make a purchase. Assume that a professional company offers three services, priced at $2,000, $7,000 and $20,000, respectively. Based on past results or the sales manager’s estimates, you project that 60% of first-time buyers will choose the cheapest option, 30% will choose the middle option and 10% will choose the most expensive option. a. Calculate the size of a likely sale for any prospect that makes a purchase.
Q: Suppose Ryan and Rita were randomly shown the numbers 68 and 21, respectively, and then asked to…
A: Suppose Ryan and Rita were randomly shown the numbers 68 and 21 respectively and then asked to…
Q: Select the choices where the decision maker is rationally ignorant. An employer is deciding between…
A: The correct answer is given in the second step.
Q: many variables interact to produce particular outcomes, this is known as: Group of answer choices…
A: A variable refers to anything that changes values depending upon circumstances.
Q: A risk-neutral manager is attempting to hire a worker. All workers in the market are of identical…
A: Expected probability is the sum product of the probabilities and the corresponding values of the…
Q: Amid growing concerns that a virus outbreak from Asia will turn to a global pandemic, Ivan the…
A: Given information Investor invests in 3 sectors with 3 strategies. Given pay off Virus…
Q: Expected utility = Utility × subjective probability . Question- Explain what you understand from…
A: In economics, "expected utility" refers to the utility that a person, entity, or aggregate economy…
Q: Generation X consumers are Multiple Choice ___ likely to rely on others. ___ authoritative…
A: Gen X are the ones born between 1965 and 1979/80 and is now between the ages of 42 and 57. The…
Q: As an investment advisor, you tell a client that an investment in a mutual fund has (over the next…
A: The investment decisions or a concept known as the capital budgeting is considered to be the most…
Q: If agent i's preferences under uncertainty can be represented by the utility function u = 10x, then…
A: U = 10x U = 20-10x
Q: Consider the claim that rational investors are not willing to pay more for an investment than its…
A: Present Value is the current value of a future amount of money or investment or stream of cash flows…
Q: Indicate whether the statement is true or false, and justify your answer.Expected utility theory…
A: Expected utility is used as an economic term for summing up utility or benefit that an institution…
Q: You are a pricing manager at Argyle Inc.-a medium-sized firm that recently introduced a new product…
A: Any competitive firm will seek to maximize profit by looking at what price-revenue combination…
Q: After an exogenous change in prices or income, compensating variation is the extra amount of money…
A: Option A is correct The utility function is convex to origin hence equivalent variant is greater…
Q: A decrease in the supply of in building materials (shortage) means that construction companies…
A: In the question above, it is given that : A decrease in the supply of in building materials…
Q: ABC Instrument, a manufacturer of precise scientific instruments, relies heavily on the efforts of…
A: We are going to use the concepts such as Participation constraints and incentive compatibility…
Q: Shimadzu, a manufacturer of precise scientific instruments, relies heavily on the efforts of its…
A: Answer-
Q: True or false 1. A perceived disadvantage of Rawls's social justice theory is that it does…
A: since you have asked multiple questions and according to our policy we can only solve the first…
Q: ) True or False: Speculators have got substantial influence on second-generation
A: Excessive borrowing of government or consistent deficit in the balance of payments leads to the…
Q: Loss aversion refers to the idea that people ________. generally tend to avoid risky activities are…
A: Loss aversion suggests the idea that people are much more negatively affected by a loss than they…
Q: When a company hires a new employee, they must determine an appropriate wage based on the…
A: Scenario 1: An experience is a signal that indicates the individual is having an understanding of…
Q: Select the choices where the decision maker is rationally ignorant. An employer is deciding between…
A: Rational ignorance in economics states that the cost of acquiring information is greater than the…
Q: Question With a score of 52 on the Masculity dimension, Canadians will sacrifice family and leisure…
A: The Masculinity side of this dimension represents an inclination in the public arena for…
Q: You are a pricing manager at Argyle Inc.—a medium-sized firm that recently introduced a new product…
A: Mr. A and Mr. B are the two firm that are competing against each other. Mr. B’s want is to maximize…
Q: Indicate whether the statement is true or false, and justify your answer.Individuals who alwaysmake…
A: According to the bounded rationality, people are held up by cognitive limitations and as a result,…
Q: A parent has two children named A and B and she loves both of them equally. She has a total of Php…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: An investor is to purchase one of three types of real estate, as illustrated in Figure below. Th…
A: State of Nature Decision (Purchase) Good Economic Condition Poor Economic Conditions Apartment…
Q: Classify each of the statements as true or false. True False Answer Bank Marginal utility is always…
A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…
Q: Your company has a customer who is shutting down a production line, and it is your responsibility to…
A: The value that depicts the value of the investment that is anticipated in the future is known as the…
Q: This is not a writing assignment, this is a multiple-choice question The principal-agent problem…
A: Answer: Option D Explanation: In option D, the agent will receive more commission if he/she sells…
Q: Hyperbolic Discounting: Consider the three-period example of a player with hyperbolic discounting…
A: Optimization problem of player 2 is given by The first order condition for this is given by…
Q: Many police officer positions require the applicant to have a college degree, even though the tasks…
A: The value of determination of an expected stream of income being on the date of valuation is known…
Q: Consider this situation faced by a first-semester senior in mechanical engineering who is exhausted…
A: Problem formulation: 1) The process of describing or modelling a problem situation, and 2) the…
Q: BK Books is an online book retailer that also has 10,000 “bricks and mortar” outlets worldwide. You…
A:
Q: The action set of player 1 is {1,2, 3, 4, 5} (not considering the $ sign). When both players are…
A: Strategies (1,2,3,4,5) Both the individuals are rational and choose (5,1) as Nash equilibrium for…
Q: You are a pricing manager at Baker Company-a medium-sized firm that recently introduced a new…
A: It is given that,There are two firms in the market – Baker and Argyle where Baker is a larger firm…
Q: As an employer, suppose you find it costly to monitor employee effort 100 percent of the time. What…
A: (Q) As an employer, suppose you find it costly to monitor employee effort 100 per cent of the time.…
Q: Ahmed is an agent for Bader for maintaining Bader’s antique cars collection, including sale and…
A: In the principal-agent relationship, Ahmed is an agent and Bader is a principal. Due to the cocaine…
Q: Why is cost-minimization analysis most likely to be useful for managers?
A: Cost is the sum of money that the business incurred during the production of products and services.
Q: What is a marginal change? Question 5 options: a long-term trend a large, significant…
A: Marginal change is a concept related to the value of change in the economic variables, at…
Q: Consider two treatments. Treatment 1 saves one year of life at a cost of $10,000. Treatment 2 saves…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: generally make rational decisions that maximize desirable outcomes in the absence of emotions…
A: As per rational choice theory people make rational decisions after weighing the pros and cons of an…
Q: Milo is the young, likable, optimistic, and generous son of a prominent public official. He has a…
A: * ANSWER :- From the given information the answer is provided below as
Q: A manufacturer of microwaves has discovered that male shoppers, on average, have lower values for…
A: find the answer below.
Q: other best example of contingency planning about turnover of employees
A: An contingency planing is an arrangement formulated for a result other than in the typical…
Q: You are the manager of a firm. You are given a task to decide which of three options to take to…
A: Option Year1 (RM) Year2 (RM) Year3 (RM) A 70000 80000 90000 B 50000 90000 100000 C 30000…
Q: Ahmed is an agent for Bader for maintaining Bader’s antique cars collection, including sale and…
A: It is important to first analyse and understand the requisites of an agency. For this we need to…
Suppose that a sales force has found 20 qualified buyers and has begun the sales process. The sales manager estimates that 10% eventually proceeds to make a purchase. Assume that a professional company offers three services, priced at $2,000, $7,000 and $20,000, respectively. Based on past results or the sales manager’s estimates, you project that 60% of first-time buyers will choose the cheapest option, 30% will choose the middle option and 10% will choose the most expensive option.
a. Calculate the size of a likely sale for any prospect that makes a purchase.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A computer reseller needs to decide how many laptops to order next month. The lowest end laptop costs $220 and the retailer can sell these for $300. However, the laptop manufacturer already announced that they are coming out with a new model in a couple of months. Any laptops that will not be sold by the end of next month will have to be heavily discounted at half-price. The reseller also needs to consider that every time he fails to fulfill a laptop order, he stands to lose $25 for every unit. Based on the past months’ sales, the reseller estimates the demand probabilities for sales (S) as follows: P(0 units) = 0.3; P(1 units) = 0.4; P(2 units) = 0.2; P(3 units) =0.1. The reseller thinks it’s a good idea to conduct a survey on whether or not his customers are going to buy laptops and how many. The survey results will either be Yes (Y), No (N) or Don’t Know (DK). The probability estimates of the results based on the demand for number of units are: P(Y|S = 0 units) = 0.1 P(Y|S = 1…A computer reseller needs to decide how many laptops to order next month. The lowest end laptop costs $220 and the retailer can sell these for $300. However, the laptop manufacturer already announced that they are coming out with a new model in a couple of months. Any laptops that will not be sold by the end of next month will have to be heavily discounted at half-price. The reseller also needs to consider that every time he fails to fulfill a laptop order, he stands to lose $25 for every unit. Based on the past months’ sales, the reseller estimates the demand probabilities for sales (S) as follows: P(0 units) = 0.3; P(1 units) = 0.4; P(2 units) = 0.2; P(3 units) =0.1. The reseller thinks it’s a good idea to conduct a survey on whether or not his customers are going to buy laptops and how many. The survey results will either be Yes (Y), No (N) or Don’t Know (DK). The probability estimates of the results based on the demand for number of units are: P(Y|S = 0 units) = 0.1 P(Y|S = 1…A computer reseller needs to decide how many laptops to order next month. The lowest end laptop costs $220 and the retailer can sell these for $300. However, the laptop manufacturer already announced that they are coming out with a new model in a couple of months. Any laptops that will not be sold by the end of next month will have to be heavily discounted at half-price. The reseller also needs to consider that every time he fails to fulfill a laptop order, he stands to lose $25 for every unit. Based on the past months’ sales, the reseller estimates the demand probabilities for sales (S) as follows: P(0 units) = 0.3; P(1 units) = 0.4; P(2 units) = 0.2; P(3 units) =0.1. The reseller thinks it’s a good idea to conduct a survey on whether or not his customers are going to buy laptops and how many. The survey results will either be Yes (Y), No (N), or Don’t Know (DK). The probability estimates of the results based on the demand for the number of units are: P(Y|S = 0 units) = 0.1…
- Managerial Economics Suppose that a sales force has found 20 qualified buyers and has begun the sales process. The sales manager estimates that 10% eventually proceeds to make a purchase. Assume that a professional company offers three services, priced at $2,000, $7,000 and $20,000, respectively. Based on past results or the sales manager’s estimates, you project that 60% of first-time buyers will choose the cheapest option, 30% will choose the middle option and 10% will choose the most expensive option. a. How many qualified buyers must be found in order for the company to generate $80,000 in sales in a given period? Your final answer must be rounded to the nearest whole number.Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 10%. However, the customer has heard this claim before and believes there is only a 30% chance of actually realizing that cost reduction and a 70% chance of realizing no cost reduction. Assume the customer has an initial total cost of $300. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is . Suppose the sales representative initially offers the accounting system to the customer for a price of $19.50. The information asymmetry stems from the fact that the has more information about the efficacy of the accounting system than does the . At this price, the customer purchase the accounting system, since the expected…Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 20%. However, the customer has heard this claim before and believes there is only a 40% chance of actually realizing that cost reduction and a 60% chance of realizing no cost reduction. Assume the customer has an initial total cost of $600. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is ____ . Suppose the sales representative initially offers the accounting system to the customer for a price of $84.00. The information asymmetry stems from the fact that the Customer/Sales Rep has less information about the efficacy of the accounting system than does the Customer/Sales Rep . At this price, the customer will/will not…
- Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 20%. However, the customer has heard this claim before and believes there is only a 40% chance of actually realizing that cost reduction and a 60% chance of realizing no cost reduction. Assume the customer has an initial total cost of $500. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is Suppose the sales representative initially offers the accounting system to the customer for a price of $70.00. The information asymmetry stems from the fact that the system than does the value of the accounting system is At this price, the customer than the price. Instead of naming a price, suppose the ales representative offers to give the customer…Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 20%. However, the customer has heard this claim before and believes there is only a 20% chance of actually realizing that cost reduction and a 80% chance of realizing no cost reduction. Assume the customer has an initial total cost of $500. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is $ Suppose the sales representative initially offers the accounting system to the customer for a price of $60.00. The information asymmetry stems from the fact that the has less information about the efficacy of the accounting system than does the At this price, the customer purchase the accounting system, since the expected value of the accounting…Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 10%. However, the customer has heard this claim before and believes there is only a 20% chance of actually realizing that cost reduction and a 80% chance of realizing no cost reduction. Assume the customer has an initial total cost of $200. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is $____ . Suppose the sales representative initially offers the accounting system to the customer for a price of $12.00. The information asymmetry stems from the fact that the ______(sales rep or buyer) has less information about the efficacy of the accounting system than does the ______(sales rep or buyer) . At this price, the…
- Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 10%. However, the customer has heard this claim before and believes there is only a 20% chance of actually realizing that cost reduction and a 80% chance of realizing no cost reduction. Assume the customer has an initial total cost of $100. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is s Suppose the sales representative initially offers the accounting system to the customer for a price of $6.00. The information asymmetry stems from the fact that the system than does the value of the accounting system is True At this price, the customer than the price. Instead of naming a price, suppose the sales representative offers to give the…Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 10%. However, the customer has heard this claim before and believes there is only a 40% chance of actually realizing that cost reduction and a 60% chance of realizing no cost reduction. Assume the customer has an initial total cost of $800. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, Is Suppose the sales representative Initially offers the accounting system to the customer for a price of $56.00. The Information asymmetry stems from the fact that the has more Information about the efficacy of the accounting purchase the accounting system, since the expected system than does the . At this price, the customer than the price. value of the…Paul is interested in hiring a computer programmer for his firm. He can either search for a potential employee himself or hire a head-hunter firm to find the employee for him. If he searches himself, there is a 30% chance of not hiring the right person for the job. In contrast, the head- hunter will always find the right match. If the right person is not found for the job, the value of the programming is only RM5,000 compared to RM40,000 for the right person. Paul's risk aversion is represented by a logarithmic utility function. What is the maximum amount Paul would be willing to pay the head-hunter? (a) RM 29,500.00 (b) RM 21,375.48 (c) RM 18,624.52