cafashions

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Villanova University *

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1230

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Marketing

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Feb 20, 2024

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docx

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3

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07-14-2016 CA FASHIONS Cherilyn “Cher” Horowitz is Chief Marketing Officer for CA Fashions, a Los Angeles-based fashion retailer catering to young women with over 350 mall-based stores across the United States. Cher is currently evaluating an in-store kiosk that allows patrons to try on garments virtually, using computer vision and artificial intelligence to automatically determine whether the outfit is a “match” or “mis-match.” Skeptical, Cher has decided to pilot the kiosk in several stores to measure its impact. She will randomly select stores for the pilot, install a kiosk in each one, and monitor the pilot stores’ sales performances for one month. The observed impact of the kiosk will obviously be random for each store. She thinks it is reasonable to assume that the increase in each store’s sales will approximately follow a normal distribution. a) Assume the kiosk has a mean monthly impact of $5,000 with a standard deviation of $2,000. What is the probability that one pilot store chosen at random shows an impact less than $4,000? b) Still assuming that the kiosk has a mean impact of $5,000 and a standard deviation of $2,000, suppose Cher pilots the kiosk at 4 stores. What is the probability that the average impact at the 4 stores is less than $4,000? c) Suppose instead that Cher pilots the kiosk at 16 stores. What is the probability that the average impact at the 16 stores is less than $4,000? d) Now suppose that Cher pilots the kiosk at 64 stores. What is the probability that the © 2016 by the Kenan-Flagler Business School, University of North Carolina, Chapel Hill, NC 27599-3490. Not to be reproduced without permission. All rights reserved. This case was prepared by slaves to fashion (as if) Wendell Gilland, Adam J. Mersereau, Alan W. Neebe as a basis for class discussion rather than to illustrate the effective or ineffective handling of an administrative situation.
2 average impact at the 64 stores is less than $4,000? 1996 by the Kenan-Flagler Business School, University of North Carolina, Chapel Hill, NC 27599-3490. Not to be reproduced without permission. All rights reserved.
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