THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 195

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A large department store records the number of returns per day in women's dresses for reasons such as wrong size;husband didn't like it,color,etc.The manager of the women's dresses department recalls from her statistics class in college that the Poisson distribution might describe such events.A random sample of 150 days is taken.The number of returns per day in the sample as well as the observed frequencies is shown in the table below:

She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to 1.90.Her significance level is 0.05
-Identify the critical value.

Evaluate the effects of production scale-up and labor cost changes on overall cost and pricing in the manufacturing sector.

Understand the relationship between price changes and demand curve movement for goods or services.

Identify the concepts of complement and substitute goods and their impact on demand.

Distinguish between normal and inferior goods and how income changes affect their demand.

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Definitions:

Treasury Stock

Stocks that have been distributed and subsequently bought back by the issuing corporation, diminishing the number of shares available for trading on the public market.

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and all related expenses necessary to bring the asset to a condition ready for its intended use.

Authorized Stock

Authorized stock is the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Issued Stock

The total number of shares that a company has sold to investors and are currently outstanding.