Use the Information for the Question(s)below

question 82

Essay

Use the information for the question(s)below.
Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like to lease space in it.Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month.The cash flows from each of the businesses have approximately the same amount of risk.The business names,square footage requirements,and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:
-If your new strip mall will have 15,000 square feet of retail space available to be leased,to which businesses should you lease and why?

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Definitions:

Equal Probability

This refers to the concept that all outcomes or members of a population have the same chance of occurring or being chosen.

Stratified Random

A sampling method that involves dividing the population into subgroups and randomly selecting samples from each subgroup to ensure representation.

Nonprobability Sampling

Type of sampling procedure in which one cannot specify the probability that any member of the population will be included in the sample.

Cluster Sampling

A sampling technique where the population is divided into groups, or clusters, and a random sample of these groups is selected for study.