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Exhibit 8.1 The Following Questions Pertain to the Problem and Spreadsheet Below

question 71

Multiple Choice

Exhibit 8.1
The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 25 to make and demand is estimated to be 20 − .10 * Price of A. A unit of B costs 18 to make and demand is estimated to be 30 − .07 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 100 and 200. Let X₁ = demand for As and X₂ = demand for Bs.
Let P₁ = price for As and P₂ = price for Bs
-Refer to Exhibit 8.1. What formula is used in cell D12 of the spreadsheet for this problem?

Definitions:

Normal Population

A statistical population that follows a normal distribution, characterized by its bell-shaped curve where most observations cluster around the central peak and the probabilities for values to occur are symmetrically distributed around the mean.

Mean Age

The average age calculated by adding all the ages together and dividing by the number of individuals.

Heights of Men

This term could refer to a study or data collection focusing on measuring and analyzing the heights of male individuals.

Standard Deviation

An index quantifying how data varies in relation to the average, representing the range of data dispersal.