BUS 225 DAYONE LL
17th Edition
ISBN: 9781264116430
Author: BLOCK
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 4, Problem 5P
Summary Introduction
To calculate: The expected value of total sales made by Bronco Truck Parts.
Introduction:
Sales Projection:
It refers to projecting future sales by assuming various variables, such as units to be sold, price per unit and demand level. The expected value of sales is calculated by multiplying the sales value with its associated probability.
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Sampson Corporation is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their
occurrence are shown next:
Possible Market Reaction
Low response
Moderate response
High response
Very high response
Sales in Units
40
Probabilities
0.30
70
0.20
90
120
0.20
0.30
a. What is the expected value of unit sales for the new product?
Note: Do not round Intermediate calculations and round your answer to the nearest whole unit.)
Answer is complete but not entirely correct.
Expected value
70 units
b. What is the standard deviation of unit sales?
Note: Do not round Intermediate calculations. Round your answer to 2 decimal places.
Answer is complete but not entirely correct.
Standard deviation
19.24 units
Sampson Corp. is evaluating the introduction of a new product. The
possible levels of unit sales and the probabilities of their occurrence are
shown next:
Possible
Sales
Market Reaction
in Units
Probabilities
Low response
Moderate response
High response
Very high response
60
0.10
70
0.30
100
0.50
130
0.10
a. What is the expected value of unit sales for the new product? (Do not
round intermediate calculations and round your answer to the
nearest whole unit.)
Expected value
units
b. What is the standard deviation of unit sales? (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
Standard deviation
units
Chapter 4 Solutions
BUS 225 DAYONE LL
Ch. 4 - What are the basic benefits and purposes of...Ch. 4 - Explain how the collections and purchases...Ch. 4 - With inflation, what are the implications of using...Ch. 4 - Explain the relationship between inventory...Ch. 4 - Prob. 5DQCh. 4 - Discuss the advantage and disadvantage of level...Ch. 4 - What conditions would help make a percent-of-sales...Ch. 4 - Prob. 1PCh. 4 - Philip Morris expects the sales for his clothing...Ch. 4 - Galehouse Gas Stations Inc. expects sales to...
Ch. 4 - The Alliance Corp. expects to sell the following...Ch. 4 - Prob. 5PCh. 4 - Cyber Security Systems had sales of 3,500 units at...Ch. 4 - Dodge Ball Bearings had sales of 15,000 units at...Ch. 4 - Sales for Ross Pro’s Sports Equipment are expected...Ch. 4 - Vitale Hair Spray had sales of 13,000 units in...Ch. 4 - Delsing Plumbing Company has beginning inventory...Ch. 4 - On December 31 of last year, Wolfson Corporation...Ch. 4 - At the end of January, Higgins Data Systems had an...Ch. 4 - At the end of January, Mineral Labs had an...Ch. 4 - Convex Mechanical Supplies produces a product with...Ch. 4 - The Bradley Corporation produces a product with...Ch. 4 - Sprint Shoes Inc. had a beginning inventory of...Ch. 4 - J. Lo’s Clothiers has forecast credit sales for...Ch. 4 - Simpson Glove Company has made the following sales...Ch. 4 - Watt’s Lighting Stores made the following sales...Ch. 4 - Ultravision Inc. anticipates sales of $290,000...Ch. 4 - The Denver Corporation has forecast the following...Ch. 4 - Wright Lighting Fixtures forecasts its sales in...Ch. 4 - The Volt Battery Company has forecast its sales in...Ch. 4 - Graham Potato Company has projected sales of...Ch. 4 - Harry’s Carryout Stores has eight locations. The...Ch. 4 - Archer Electronics Company’s actual sales and...Ch. 4 - Prob. 27PCh. 4 - The Manning Company has financial statements as...Ch. 4 - Conn Man’s Shops, a national clothing chain, had...
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