Solve the Problem. -The Stadium Vending Company Finds That Sales of Hot Dogs

question 136

Multiple Choice

Solve the problem.
-The stadium vending company finds that sales of hot dogs average 48,000 hot dogs per game when the hot dogs sell for $2.50 each. For each 50 cent increase in the price, the sales per game drop by
5000 hot dogs. What price per hot dog should the vending company charge to realize the maximum
Revenue?

• A) $3.90
• B) $2.30
• C) $4.80
• D) $3.65

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Definitions:

Forecasting Method

A process used to predict future values based on past and present data, often utilized in finance, weather prediction, and supply chain management.

Systematic Component

The part of a process or series that can be directly linked to specific casual factors, showing predictable patterns over time.

Random Component

In statistical models, the part of variation that cannot be attributed to any identifiable factors and appears without a discernible pattern.

Trend Corrected Exponential Smoothing

A forecasting technique that adjusts exponential smoothing to account for trends in the data, enhancing prediction accuracy.