A Retailer Is Deciding How Many Units of a Certain

question 86

Multiple Choice

A retailer is deciding how many units of a certain product to stock.The historical probability distribution of sales for this product is 0 units,0.2;1 unit,0.3;2 units,0.4,and 3 units,0.1.The product costs $8 per unit and sells for $25 per unit.What is the conditional value for the decision alternative "Stock 3" and state of nature "Sell 1"?

• A)1.4 units
• B)$1 profit
• C)$25 profit
• D)$-8 profit
• E)$23.80 profit

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Definitions:

Positive Attitude

A mindset characterized by optimism and constructive thinking, often leading to improved outcomes in personal and professional endeavors.

Sales Performance

The measurement of sales activities effectiveness, often evaluated against sales targets or goals.

Follow-Up Stage

In customer relationship management, it refers to the actions taken after a sale to maintain contact with the customer, gather feedback, and encourage repeat business.

Repeat Customers

Individuals who make several purchases from the same brand or company over time, demonstrating loyalty and satisfaction with their previous experiences.