The XYZ Manufacturing Company Produces Ball Bearings

question 30

Short Answer

The XYZ manufacturing company produces ball bearings. The annual fixed cost is $20,000 and the variable cost per ball bearing is $3. The price is related to demand according to the following equation: 1000 - 8p.
-What is the optimal profit?

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Definitions:

Robustness

The ability of a statistical method or test to remain effective under a variety of conditions or assumptions, or when faced with violations of those assumptions.

Sign Test

A non-parametric test used to evaluate the difference between paired samples, based on the direction of the differences between the pairs, not their magnitude.

T Test

A statistical test used to compare the means of two groups or the mean of one group with a known value, under the assumption of normally distributed data.

T Procedure

A statistical method used to test the mean of a population, especially useful when dealing with small sample sizes and unknown population standard deviations.