Nancy Owns a High-Fashion Boutique and One Source of Competitive

question 108

Multiple Choice

Nancy owns a high-fashion boutique and one source of competitive advantage in the past has been her ability to spot the latest trends, stock the store with those items, and sell out before the next new trend becomes popular. Unfortunately, this year Nancy missed on what would be "hot" and is now stuck with mountains of clothing and accessories that did not sell. All of her cash is invested in this clothing and at the moment she is unable to restock the store with the next season's clothes. Nancy is likely not worried because:

• A) her business insurance policy will cover the losses she is forced to take on this merchandise.
• B) she has a rich uncle who will invest in the business so she can buy new merchandise and she will have a sale to move the old merchandise.
• C) trends come back quickly so she will keep the clothes to sell later.
• D) she is doing much less advertising.

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Definitions:

Probability

An indicator representing the probability or odds of a specific event happening, with its value ranging from 0 to 1.

Normal Model

A type of statistical distribution that is symmetric and describes how values are dispersed or spread around the mean.

Standard Deviations

Standard deviations measure the amount of variation or dispersion of a set of values from their mean, indicating how spread out the data points are.

Random Variable

A variable whose values are outcomes of a random phenomenon and are subject to variability.