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A Manufacturer of Stereo Equipment Introduces New Models in the Fall

question 49

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A manufacturer of stereo equipment introduces new models in the fall. Retail dealers are surveyed immediately after the Christmas selling season regarding their stock on hand of each piece of equipment. It has been discovered that unless 40% of the new equipment ordered by the retailers in the fall had been sold by Christmas, immediate production cutbacks are needed. The manufacturer has found that contacting all of the dealers after Christmas by mail is frustrating as many of them never respond. This year 80 dealers were selected at random and telephoned regarding a new receiver. It was discovered that 38% of those receivers had been sold. Since 38% is less than 40%, does this mean that immediate production cutbacks are needed or can this difference of 2 percentage points be attributed to sampling? Test at the 0.05 level. Computed z = -0.37.

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Definitions:

Organizational Culture

An assortment of mutual goals, values, attitudes, and customs that typify a specific institution or organization.

Allocation of Rewards

The process of determining how rewards, recognition, and resources are distributed among individuals or groups in an organization.

Organizational Culture

The set of shared values, beliefs, and norms that influence the way members of an organization interact with each other and with stakeholders.

Rite of Enhancement

Ceremonial activities designed to improve the status or position of an individual within an organization.

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