18. A wide and short density function has a large relative to the A. standard de
ID: 335987 • Letter: 1
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18. A wide and short density function has a large relative to the A. standard deviation, mean B. standard deviation, outcome C. mean, standard deviation D. mean, outcome 19. Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. What is the underage cost? A. $0.10 B. $0.40 C. $0.50 D. $1.50 20. Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is its maximum profit? as 200 A. $5000 - B. $7500 C. $8000 D. $12,500 tai bus subtera 1200 antes n io nup lunettes to go This is the end of the multiple choice or True/False section. PART II: Problem Solving Answer the following questions in the space provided below each question. Be absolutely as neat/brieflelegant as possible but show all work (how you got the answer). I value correctness much more than "blah, blah, blah." That said, I can only award partial credit to wrong answers if justifications are provided. 21. C&A; reports annual sales of $5 million, cost of goods sold of $2 million, inventory of $0.5 million, and net income of $0.75 million. What are C&A;'s annual inventory turns and month-of-supply of inventory?Explanation / Answer
Solution- Since Chegg policy entitles me to solve just the first question in case multiple questions are posted, still I am solving the first two question mentioned here-
18. Standard Deviation, Mean. The mean decides the center of the distribution while the standard deviation decides the width and height of the bell. A large standard deviation would result in short and wide density function.
19. Underage cost = Selling price - purchasing cost = 2 - 0.50 = $1.50
We are not considering the 20% discount in the price as then would be called salvage value and not selling price. Salvage value is the price at the end of the day to sell unsold products. So 2*(100-80%) = 1.6 would be the salvage price.
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