A Buyer for a Department Store Orders Sweaters About 6 $\leq$

question 32

Multiple Choice

A buyer for a department store orders sweaters about 6 months before the winter season. The store plans to hold a March clearance sale to sell any surplus goods by February 29. Each piece costs $100 per pair and sells for $120 per pair. At the sale price of $60 per pair, it is expected that any remaining stock can be sold during the March sale. Assume that a uniform probability distribution ranging from 250 to 450 items describes the demand. The expected demand is 300. In the context of the single period inventory system, the optimal order size Qmust satisfy the condition _____.

• A) P(demand \(\leq\) Q*) = 1/2
• B) P(demand \(\leq\) Q*) = 1/3
• C) P(demand \(\leq\) Q*) = 1/4
• D) P(demand \(\leq\) Q*) = 1/5

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Definitions:

Representative Sampling

A method in statistics where a small subset of a population is chosen to accurately reflect the characteristics of the whole population.

Self-Report Bias

Refers to the bias that occurs when participants in research projects over or under-report behaviors or attitudes due to misremembering, misunderstanding, or wanting to present themselves in a favorable light.

Experimenter Bias

A process where the scientists performing the research influence the results, consciously or unconsciously, in order to portray a certain outcome.

Descriptive/Correlational Research

A research methodology that observes and describes behavior without influencing it, and may involve measuring the relationship between two or more variables.