Management at a Retail Store Is Concerned About the Possibility

question 96

Short Answer

Management at a retail store is concerned about the possibility of drug abuse by people who work there. They decide to check on the extent of the problem by having a random sample of the employees undergo a drug test. Several plans for choosing the sample are proposed. Name the sampling strategy in each.
a. Randomly select ten stores around the country and survey all the employees that work at those stores.
b. Choose the fourth person that arrives to work for each shift.
c. There are four employee classifications: supervisors, fulltime clerks, part-time clerks, and maintenance staff. Randomly select ten people from each category.
d. Each employee has a three-digit identification number. Randomly choose 40 numbers.

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Definitions:

Commodity Products

Products that are largely interchangeable with others of the same type because they have no significant differentiation.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace, determined by supply and demand dynamics.

Oligopolistic Market

A market structure characterized by a small number of large firms dominating the industry, with significant barriers to entry for new competitors.

Price Wars

A competitive situation in which retailers and manufacturers continuously reduce prices to outdo each other, often resulting in minimal profits.