Department Store
a Large Department Store Records the Number of Returns

question 125

Essay

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.State the null and alternative hypotheses.
H₀: _______________________________________________________________
H₁: _______________________________________________________________

Explain the concept of short-run and long-run equilibrium within purely competitive markets.

Assess the role of cost structures (including MR=MC, ATC, AVC) in determining the firm’s profitability and the market's competitive behavior.

Understand the dynamics of supply and demand in long-run market equilibrium in purely competitive markets.

Comprehend the characteristics and outcomes of constant-cost, increasing-cost, and decreasing-cost industries.

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Definitions:

British Blockaded

Refers to historical instances where British naval forces imposed a blockade on enemy ports to restrict and control maritime traffic and goods.

Embargo Act

Legislation enacted by the U.S. Congress in 1807 prohibiting American ships from trading in all foreign ports, in response to British and French restrictions on U.S. trade.

Revolutionary War

Also known as the American Revolution, a conflict between thirteen American colonies and British rule from 1775 to 1783 that led to the colonies' independence.

Townshend Acts

1767 parliamentary measures (named for the chancellor of the Exchequer) that taxed tea and other commodities and established a Board of Customs Commissioners and colonial vice-admiralty courts.