Suppose a Ball Manufacturer Produces Soccer Balls, Footballs, and Volleyballs

question 42

Multiple Choice

Suppose a ball manufacturer produces soccer balls, footballs, and volleyballs. The manager feels that restricting the types of balls produced could increase revenue. The following table gives the price of each ball, the raw materials cost, and the profit on each ball. The monthly profit must be at least $40,000, and the raw materials costs must be no more than $50,000. How many of each type of ball should be produced to maximize the revenue? What is the maximum revenue?

• A)The maximum revenue is $100,000 when 5,000 volleyballs and no footballs or soccer balls are produced.
• B)The maximum revenue is $137,500 when 5,500 soccer balls and no footballs or volleyballs are produced.
• C)The maximum revenue is $165,000 when 5,500 footballs and no soccer balls or volleyballs are produced.
• D)The maximum revenue is $150,000 when 5,000 footballs and no soccer balls or volleyballs are produced.
• E)The maximum revenue is $125,000 when 5,000 soccer balls and no footballs or volleyballs are produced.

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Definitions:

Critical Value

A threshold value in statistical testing used to determine whether to reject the null hypothesis.

Alpha

The threshold of significance in hypothesis testing, representing the probability of committing a Type I error.

Difference Scores

The subtraction results of one set of numerical data from another, used to analyze changes or effects in experiments.

Null Hypothesis

The null hypothesis is a statement that there is no effect or no difference, and it serves as the assumption to be tested in statistical analyses.