Managerial Economics Case Study

One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?

9. No, because each child's 2 sets of chromosomes are rearranged independently, so that there is an equal probability of all of them having the same genotype (1/2^4, or 1/16) as there is of them having all different ones

|1. |An insurance representative wants to determine if the proportions of women and men who buy the different policy types are the |

(2) Give that a sample of 25 had x = 75, and (x-x)² = 48 the mean and standard

30. According to the figure below, if the firm is maximizing profits, profit is represented by the area:

-3 x 1.66 pts. = minus 5 pts. = 45 pts. out of 50 pts. = 90%

E[RB ] = 0.3 × 0.14 + 0.4 × (−0.04) + 0.3 × 0.08 = 0.05 = 5%.

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

they will pass the course. The probability of not passing if the student does not do the

If P(A) = 0.3, P(B) = 0.2, P(A and B) = 0.0 , what can be said about events A and B?

(d) What will Yabba’s market share have to be for it to generate a profit of $700,000?

The experiment consists of choosing 5 players from the 6 that are declared. The other 7 players are not declaring for the NFL draft. The number of elements in the sample space, S, is C(13, 5). Because there are 6 players declaring, the number of ways of picking all 5 seniors is C(6,5). So, the probability of the event, E, of choosing all 5 seniors is:

9. Flip a coin 25 times and keep track of the results. What is the experimental probability of landing on tails? What is the theoretical probability of landing on heads or tails?

28. The Polo Development Firm is building a shopping center. It has informed renters that their rental spaces will be ready for occupancy in 19 months.  If the expected time until the shopping center is completed is estimated to be 14 months, with a standard deviation of 4 months, what is the probability that the renters will not be able to occupy in 19 months?

5. P = $40({1 – [1/(1 + .03)]26 } / .03) + $1,000[1 / (1 + .03)26]