The Total Weekly Revenue (In Dollars) of Country Workshop Associated

question 20

Multiple Choice

The total weekly revenue (in dollars) of Country Workshop associated with manufacturing and selling their rolltop desks is given by the function ​ ​
Where x denotes the number of finished units and y denotes the number of unfinished units manufactured and sold each week. Compute and when x = 200 and y = 180. Interpret your results.
​

• A) -$380/unit; -$20/unit The weekly revenue decreases by $380/unit for each additional finished desk produced (beyond 200) when the level of production of unfinished desks remains fixed at 180; the revenue decreases by $20/unit when each additional unfinished desk (beyond 180) is produced and the level of production of finished desks remains fixed at 200. ​
• B) $36/unit; $24/unit The weekly revenue increases by $36/unit for each additional finished desk produced (beyond 200) when the level of production of unfinished desks remains fixed at 180; the revenue increases by $24/unit when each additional unfinished desk (beyond 180) is produced and the level of production of finished desks remains fixed at 200. ​
• C) $36/unit; -$24/unit The weekly revenue increases by $36/unit for each additional finished desk produced (beyond 200) when the level of production of unfinished desks remains fixed at 180; the revenue decreases by $24/unit when each additional unfinished desk (beyond 180) is produced and the level of production of finished desks remains fixed at 200. ​
• D) $24/unit; $36/unit The weekly revenue increases by $36/unit for each additional finished desk produced (beyond 200) when the level of production of unfinished desks remains fixed at 180; the revenue decreases by $24/unit when each additional unfinished desk (beyond 180) is produced and the level of production of finished desks remains fixed at 200. ​

Recognize the role of effect size in interpreting the results of hypothesis testing.

Comprehend the importance of sample size in the context of statistical power and error rates.

Know the significance levels and their role in determining the probability of Type I and Type II errors.

Understand how variance contributes to statistical tests and interpretations.

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Definitions:

TOTE

The self-regulation feedback loop of Test, Operate, Test, Exit.

Evaluate

To assess or examine something in order to understand its value, importance, or condition, often leading to a judgment.

Error Management Theory

The idea that both men and women seek to minimize the most costly type of error, but that men’s and women’s goals, and hence worst errors, differ.

Certainty Effect

In decision making, the greater weight given to definite outcomes than to probabilities.