Scenario 1.2 Use the Following to Answer the Questions

question 158

Multiple Choice

Scenario 1.2
Use the following to answer the questions.
Paws and Claws Hotel is a full-service pet salon and boarding kennel.Paws and Claws has an interactive website where customers can directly book a grooming appointment,obedience class,or overnight accommodations for their dog or cat.Paws and Claws has several unexpected services,such as a 600-square foot swimming pool,complete with slide and dog-friendly graduated steps to help them exit the pool.Customers can also drop their dog or cat off each morning for pet day care.Paws and Claws has a pick-up and delivery service,webcams in every kennel so that pet families can view their pets while away,and pet "furniture" so that the cats and dogs can lie on sofas just like at home.Paws and Claws is also open 24 hours a day,365 days each year so that customers can pick up their pet at any time.
The cost for an overnight stay at Paws and Claws averages $50,compared to competing kennels at about $30.The day care costs are $25 for either a dog or cat.The majority of Paws and Claws' competitors don't offer the day care service,and require an two-day minimum for overnight stays.
Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation.Previously,Paws and Claws was more interested in competing based on its prices.
-Refer to Scenario 1.2.Paws and Claws' target market is most likely to be which of the following?

• A)The dogs and cats who stay there
• B)Pet owners who go on vacation frequently
• C)Families with small children and several pets
• D)Suburban families with two-income households
• E)Urban professionals who travel often

Explore the impact of mixing risk-free and risky assets on a portfolio's risk and return.

Recognize the role of diversification in managing portfolio risk.

Identify the mathematical relationships used to determine the standard deviation of a portfolio's return.

Compare and contrast the effects of different asset combinations on portfolio variance.

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Definitions:

Box Plot

A visual representation of the distribution of a dataset that shows the median, quartiles, and outliers, presenting a five-number summary of the dataset.

5-number Summary

A descriptive statistic that provides a quick overview of a dataset's distribution through five key numbers: minimum, first quartile, median, third quartile, and maximum.

Interquartile Range

The measure of variability which is the difference between the third quartile and the first quartile in a dataset, indicating the spread of the middle 50%.

Percentiles

Values or scores below which a given percentage of observations in a group of observations fall.