The Weekly Demand for a Company's Product Follows the Probability

question 22

Multiple Choice

The weekly demand for a company's product follows the probability distribution below. Use the following random numbers to simulate the product's demand for the next five weeks: 72,27,93,17,47.
If the first random number interval begins with 0 then the estimated total demand for the simulated five week period is

• A)700.
• B)650.
• C)625.
• D)550.

---

Definitions:

Quantity Blocks

Predefined quantities of goods or services, often used in pricing or packaging.

Third-degree Price Discrimination

A pricing strategy where different prices are charged to different groups of customers based on their willingness to pay.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to changes in its price, indicating the sensitivity of consumers to price changes.

Increasing Block Rate

A pricing structure where the unit price of a service or commodity increases with the amount consumed, commonly used in utility and service pricing to encourage conservation.