Examlex
An entrepreneur who operates a cellular phone store orders inventory of cell phones based on four internal memory specifications - 8 GB, 16 GB, 32 GB, and 64 GB. She wants to evaluate her inventory ordering policy for the phones with four different amounts of internal memory. Any phone unsold at the end of a period is kept in inventory for the next sales period and incurs a holding cost expressed as 10% of the cost per unit per period. If demand during a period exceeds supply for a phone, then sale is lost. The data on the cost and selling prices of the cell phones categorized by these memory specifications are known, and representative data on the past sales are also available. Past Sales:
a. Construct a spreadsheet simulation model to estimate the total profit the entrepreneur earns in a period when ordering 300 units of each cell phone. To model the respective cell phone demands, fit a realistic distribution to the sales data. What is the average total profit? What is the estimated likelihood that the entrepreneur makes less than $10,000 next period?
b. Using Spearman rank correlation, compute the correlations between the demands for the cells phones based on the four memory specifications. Incorporate a correlation matrix to captures the interrelationships between the demands for each cell phone type. What is the average total profit? What is the estimated likelihood that the entrepreneur makes less than $10,000 next period? Comparing these answers to (a), conclude how the correlated demand affects the model's implications.
Induced Consumption
Induced consumption is the portion of consumer spending that increases with an increase in disposable income.
Disposable Income
The finance available to households for expenditures and saving after reducing income taxes.
Disposable Income
Money that households can earmark for spending and saving after income taxes are considered.
Consuming Too Much
Consuming too much refers to the act of using or buying more resources or products than are needed, often leading to waste and potential environmental and economic consequences.
Q1: Demand for a product and the
Q11: Which of the following states the objective
Q13: _ refers to the scenario in which
Q14: Given the following classification confusion matrix,
Q14: The Watch Window is observable<br>A)only when the
Q23: A store is offering a discount
Q49: The Excel add-in _ is used to
Q51: _ is a constraint requiring that two
Q73: The accounting equation may be expressed as<br>A)Assets
Q145: Gibson Company recorded the following cash transactions