Narrative 3-3 Gap Inc. Runs Gap,Banana Republic,and Old Navy Clothing Stores. Gap

question 72

Multiple Choice

Narrative 3-3
Gap Inc. runs Gap,Banana Republic,and Old Navy clothing stores. Gap Inc. has received intense negative news coverage regarding the treatment of workers in the overseas factories from which it buys its clothes. They have multiple regulatory requirements to adhere to because the goods are sold in Canada,including needing to comply with CCOHS (Canadian Centre for Occupational Health and Safety) or Environment Canada regulations.
For example,in a dusty factory in Lesotho,Africa,workers can't escape breathing in the fibres. When they cough,their mucus is full of coloured fibres. In another Gap supplier's factory in Bangladesh,workers are beaten for simple mistakes and often not paid for the work. In El Salvador,workers complained about abuse and terrible working conditions. One worker said,"I'm very proud to sew pants for Gap,but the board of directors should not be proud of what is happening to us. Gap has abandoned us."
Some wages were so low that workers couldn't buy enough food for themselves and their families. A union organizer said,"We want them to pay a wage that allows a decent standard of living and allow workers to organize unions to improve their conditions in factories."
Gap is not the only company that relies on such suppliers. Almost any plant in the non-developed countries of the Far East would also have to answer to CCOHS or Environment Canada. Because of strong competition and price-conscious consumers,retailers like Gap quickly switch orders from one factory or country to another whenever they can find a lower price. According to protest groups,that intense pressure to keep prices low encourages factory owners and managers to do everything they can to cut their costs,including mistreating workers. And with 4,000 factories in 50 countries supplying clothes for Gap Inc.'s three stores,protest groups see Gap as a big part of the problem.
Intense negative publicity,protest groups calling for worldwide Gap boycotts,and the company losing money is a tough situation for the CEO. Since Gap is a publicly traded company,keeping shareholders happy is a fundamental responsibility. On the one hand,the company needs to be profitable,which seems to mean overseas suppliers keeping their prices low. On the other hand,negative publicity and boycotts may lower sales and reduce profits.
-Refer to Narrative 3-3. Which of Gap's actions indicate it was ignoring its discretionary responsibilities to society?

• A)Gap ignored the terrible treatment of overseas workers in the clothing industry. 
• B)Gap created competitive advantages that are not sustainable. 
• C)Gap engaged in fashion obsolescence. 
• D)Gap allowed demand for its clothing to exceed the supply.

Understand the concept of simple linear regression, including how to represent the relationship between two quantitative variables.

Interpret confidence and prediction intervals within the context of linear regression.

Identify the appropriate statistical test for hypotheses concerning the slope in linear regression.

Analyze and interpret scatter plots and residual plots for assessing the fit of a linear regression model.

---

Definitions:

Malaria

A disease caused by a parasite transmitted to humans through the bite of infected mosquitoes.

Dewpoint

The temperature at which air becomes saturated with moisture and dew can form.

Categorical Variable

A type of variable that can take on one of a limited, and usually fixed, number of possible values, representing distinct categories or groups.

Response Variable

The outcome variable of interest in a study or experiment, which is hypothesized to depend on one or more independent variables.