Department Store
a Large Department Store Records the Number of Returns

question 71

Short Answer

Department store
A large department store records the number of returns per day in women's dresses for reasons such as wrong size; husband didn't like it,color,etc.The manager of the women's dresses department recalls from her statistics class in college that the Poisson distribution might describe such events.A random sample of 150 days is taken.The number of returns per day in the sample as well as the observed frequencies are shown below: $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Returns Per Day }\end{array} & \begin{array} { c } \text { Observed } \\\text { Frequency }\end{array} \\\hline 0 & 21 \\1 & 37 \\2 & 44 \\3 & 30 \\4 & 14 \\> 4 & 4 \\\hline\end{array}$$
She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to 1.90.Her significance level is 0.05.What are the appropriate degrees of freedom?

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Definitions:

Cognitive Assessment Techniques

These are methods or tools used to evaluate an individual's mental processes, including memory, attention, problem-solving skills, and other aspects of cognition.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice where trading partners work together to match supply and demand, improving inventory efficiency.

S&OP

Sales and Operations Planning; a process to align the company's demand plans with its production capabilities, operational and financial plans.

Logistical Problems

Issues or complications arising in the planning, implementation, and coordination of moving goods and services from producers to consumers.