If a Vendor Has Correctly Used Marginal Analysis to Select

question 15

Multiple Choice

If a vendor has correctly used marginal analysis to select their stock Levels for the day (as in the newsperson problem) and the profit resulting from the last unit being sold (MP) is $0.90 and the loss resulting from that unit if it is not sold (ML) is $0.50,which of the following is the probability of the last unit being sold?

• A)Greater than 0.357
• B)Greater than 0.400
• C)Greater than 0.556
• D)Greater than 0.678
• E)None of the above

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Definitions:

Multifactorial Evaluation

An assessment approach that considers multiple variables and factors to understand a complex phenomenon or condition.

Human Resource Management

The strategic approach to the effective management of people in an organization to help the business gain a competitive advantage.

Unstructured Interview

A type of interview in which the questions are not predetermined, allowing for a free-flowing and open-ended conversation.

Graphic Rating

A method used in assessments where subjects are rated along a continuum or scale to visually depict their performance, attitudes, or feelings.