If a Vendor Has Correctly Used Marginal Analysis to Select

question 89

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 (C_u) is $120 and the loss resulting from that unit if it is not sold (C_o) is $360,which of the following is the probability of the last unit being sold?

• A) Greater than 0.90
• B) Greater than 0.85
• C) Greater than 0.75
• D) Greater than 0.25
• E) None of the above

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Definitions:

Open-Book Management

A management approach where employees are provided with company financial information to involve them in decision-making processes.

Human Resource Information Systems

A system of databases and information management that automates processes related to the human resource management functions like payroll, recruitment, and performance evaluation.

Human Resource Planning

The process of identifying the current and future human resources needs of an organization to achieve its goals.

Reduction Strategy

Approaches businesses use to downsize, reduce costs, or streamline operations, often involving layoffs or selling off assets.