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

Identify factors leading to false memories and memory intrusions.

Differentiate between true memories and false memories including factors that influence memory accuracy.

Explain the conceptual foundation of flashbulb memories and their characteristics compared to other types of memories.

Understand the concept of a budget constraint and how it limits consumer choices.