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Grant\'s Western Wear is a retailer of western hats located in Atlanta, Georgia.

ID: 339803 • Letter: G

Question

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other western wear stores. Also, because of the rapid growth in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople Examine this chart. 1.00 0.90 0.80 0.70 8 0.60 0.50 5 0.40 0.30 0.20 0.10 0.00 $793 $822 $850 $879 $908 $936 $965 $994 $1,022 $1,051 $1,080 $1,108 $1,137 $1,166 $1,194 $1,223 Profit What is the most likely profit - approximately? 1,308 907 1,107 1,207 1,007

Explanation / Answer

The most likely profit is at point, where the slope of cumulative probability curve is the steepest.

The slope of curve In the graph, is apprarently the steepest at a point near 1022.

Therefore, the the best approximation (out of given options) of most likely profit is 1,007 (approximately)