A Manager in Charge of New Product Development Can Hire

question 14

Multiple Choice

A manager in charge of new product development can hire engineers and market researchers.The annual salary of an engineer is $40,000 while a market researcher receives $20,000.The marginal contribution of engineers and market researchers are: Based on the above information,how should a manager with an annual budget of $140,000,allocate this budget in order to maximize the number of new products developed?

• A)Hire one engineer and five market researchers
• B)Hire two engineers and three market researchers
• C)Hire three engineers and one market researcher
• D)Hire four engineers and four market researchers

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Definitions:

Statistically Significant

Indicates that an observed effect or result is unlikely to have occurred by chance, suggesting a real impact or difference that is not due to random variation.

Inferential Statistics

A branch of statistics focused on drawing conclusions about populations based on samples.

Power

In statistics, the probability that a test will correctly reject a false null hypothesis; essentially, the test's sensitivity to detect an effect when there is one.

Likelihood Of Error

The probability or chance that a statistical conclusion may be incorrect or misleading.