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Use a Modern Software Tool to Perform Statistical Calculations -Calculate the Daily Sales During the Discount Sales Period

question 21

Multiple Choice

Use a modern software tool to perform statistical calculations.
Use the table below to answer the following question(s) .
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters as part of the winter collection for $65 with an inventory of 1500. The main selling season is 60 days between November and December. The store then sells the remaining units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia sells the sweaters at full retail price for only 45 days, while giving a discount of 25 percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and 1.1 respectively. $\begin{array}{|l|l|}\hline\text { Marked Down Pricing Model for } \\\text { Fiberia Accessories's new sweater} \\\hline & \\\hline \text { Data } & \\\hline \text { Retail Price } & \\\hline \text { Inventory } & \$ 65 \\\hline \text { Selling Season (days) } & 1500 \\\hline \text { Days at Full Retail } & 60 \\\hline \text { Intermediate Markdown } & 45 \\\hline \text { Clearance Markdown } & 25 \text { percent } \\\hline \text { Demand Function } & 65 \text { percent } \\\hline \text { A } & \\\hline \text { B } & 79.5 \\\hline\end{array}$
-Calculate the daily sales during the discount sales period.

Definitions:

Human Capital

The combined abilities, expertise, and non-physical assets of people that can generate economic benefits for the individuals, their employers, or the society.

Technological Progress

The improvement or development in technology which increases productivity and can lead to economic growth and improved living standards.

Backward-Bending

This term describes a situation where, beyond a certain point, higher wages actually lead to a decrease in labor supply because workers prefer leisure over additional work.

Substitution Effect

The economic principle that as the price of one good increases, consumers will replace it with a similar, less expensive good, influencing demand patterns.