Wal-Mart Has a Highly Sophisticated System of Recording Data and Being

question 12

Multiple Choice

Wal-Mart has a highly sophisticated system of recording data and being able to view results. For instance, Wal-Mart managers know from their scanner data that five pair of Wrangler Blue Jeans were sold from 10:00 a.m. to 11:00 a.m. on a certain day, and by what size. If the sales were made via credit card, Wal-Mart also knows "who," and has developed histories of what combinations of products its customers buy. The preceding is an observational situation involving which of the following?

• A) people watching people
• B) people watching phenomena
• C) machines watching people
• D) machines watching phenomena
• E) All of the above are observation situations.

---

Definitions:

Profit Function

A mathematical representation showing the relationship between a firm's profits and its output or other relevant variables.

Advertising Costs

Expenses incurred in promoting a product or service to potential customers through various media channels.

Profit Function

A mathematical formula used to calculate the maximum profit that can be obtained by a firm, defined as total revenue minus total costs.

Advertising Costs

Expenses incurred in promoting a product, service, or brand to potential customers.