A Store Has Determined That the Weekly Sales of a Product

question 29

Multiple Choice

A store has determined that the weekly sales of a product is related to the number of customers who visit the store and the square feet of shelf space, x, according to the following equation: -20x² - 10C² + 40Cx + 120x - 200C + 600. C represents the hundreds of customers who visit their store. If a store averages 200 customers per week, which of these methods represents the simplest way to determine the optimal number of square feet of shelf space for the product?

• A) Lagrangian functions
• B) Excel Solver
• C) substitution method
• D) solution of simultaneous equations
• E) none of the above

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Definitions:

Mean Square Error

A statistical measure indicating the average of the squares of the errors or deviations—i.e., the difference between the estimator and what is estimated.

F Statistic

A ratio used in statistical analysis to determine the relationship between variances and to test hypotheses about the means of several populations.

Alternative Hypothesis

In statistical hypothesis testing, it is the hypothesis that suggests there is a difference or effect, in contrast to the null hypothesis which suggests no effect or difference.

Population Mean

The average characteristic or measure of a total population, representing a central or typical value of the population data.