The Back-To-Back Stem-And-Leaf Display Compares the Percent Growth in Sales

question 12

Multiple Choice

The back-to-back stem-and-leaf display compares the percent growth in sales for a retail chain's stores located in two regions of Canada.The lower stem contains leaves with the digits 0-4 and the upper stem contains leaves with digits 5-9.
Key:
3 | 5 = 35% sales growth

• A)The distribution of sales growth in Region 1 stores is unimodal,symmetric and tightly clustered around 35% growth.The distribution of sales growth in Region 2 stores is much more spread out,with most stores having sales growth between 5% and 35%.A typical Region 2 store had about 15% growth.There were two outliers,one store with 58% growth and another with 65% growth.Generally,the sales growth rates in the Region 2 stores were higher and more variable than the rates in the Region 1 stores.
• B)The distribution of sales growth in the Region 1 stores is unimodal,symmetric and tightly clustered around 35% growth.The distribution of sales growth in Region 2 stores is much more spread out,with most stores having sales growth between 5% and 35%.A typical Region 2 store had about 15% growth.There were two outliers,one store with 58% growth and another with 65% growth.Generally,the sales growth rates in the Region 1 stores were higher and less variable than the rates in the Region 2 stores.
• C)The distribution of sales growth in Region 1 stores is unimodal,symmetric and tightly clustered around 35% growth.The distribution of sales growth in Region 2 stores is much more spread out,with most stores having sales growth between 5% and 35%.A typical Region 2 store had about 15% growth.There were two outliers,one store with 58% growth and another with 65% growth.Generally,the sales growth rates in the Region 1 stores were higher and more variable than the rates in the Region 2 stores.
• D)The distribution of sales growth in Region 1 stores is unimodal,symmetric and tightly clustered around 45% growth.The distribution of sales growth in Region 2 stores is much more spread out,with most stores having sales growth between 5% and 35%.A typical Region 2 store had about 25% growth.There were two outliers,one store with 58% growth and another with 65% growth.Generally,the sales growth rates in the Region 2 stores were higher and more variable than the rates in the Region 1 stores.
• E)The distribution of sales growth in Region 1 stores is unimodal,symmetric and tightly clustered around 45% growth.The distribution of sales growth in Region 2 stores is much more spread out,with most stores having sales growth between 5% and 35%.A typical Region 2 store had about 25% growth.There were two outliers,one store with 58% growth and another with 65% growth.Generally,the sales growth rates in the Region 1 stores were higher and less variable than the rates in the Region 2 stores.

---

Definitions:

Economic Profit

A calculation of profitability that takes into account both the direct costs and opportunity costs of pursuing a particular course of action.

Economies Of Scale

The situation when a firm’s average total cost of producing a product decreases in the long run as the firm increases the size of its plant (and, hence, its output).

Excess Production

The situation where more units of a product are produced than are demanded, often resulting in surplus inventory.

Economic Theory

Economic theory encompasses models and principles that explain the functioning of economies, markets, and the behavior of economic agents. It seeks to understand how resources are allocated, prices are set, and wealth is distributed.