Chapter 2. Two different types of snacks became available around the 1930's in the USA - Fritos CornChips in 1932 and Lay's Salted Potato Chips in 1931. They both captivated the consumer markets inslightly different regions. While Frito's were popular across the Southern states, Lay's primarily sold inthe Southeastern states. As you can imagine, there was some overlap in their market regions and asboth companies grew, they started to compete for market shares in other states. Just for the sake ofimagination, let us assume that you are a sales manager working for Mr. Dooley (the inventor ofFrito's) in the mid-1930s and that you believe that the probability of a customer purchasing a bag ofFrito's versus a bag of Lay's is based upon the customer's most recent purchase in Kansas, where boththe companies are planning to expand into. Suppose that the following transition probabilities areobserved by your team:ToFromFrito'sLay'sFrito's0.80.2Lay's0.250.751. If a customer who last purchased a bag of Frito's is considered, what is the probability that theypurchase Frito's in their third purchase (period 3)?2. The long-run market share for Frito's in Kansas would be% and for Lay'swould be%.3. Suppose that Mr. Dooley wants to launch a special discount campaign such that it would increasethe transitional probability from Lay's to Frito's from 0.25 to 0.30. What would be the newprojected market share for Frito's after the campaign?(In case you were curious, Frito's and Lay's went through similar market share struggles for about 30years. During that time, they tried various strategies including allowing entry into each other'smarkets and sharing production facilities and counter space at stores. It culminated in a formal mergerin 1961, after which Frito-Lay's was adopted as the formal name of the company).

Answered: 1. If a customer who last purchased a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand Probability 65 0.05 Stock 65 70 75 80 85 70 0.25 This textbook costs the bookstore $82 and sells for $107. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 75 P=0.30 65 P = 0.05 0000 70 P = 0.25 75 0.30 ☐☐☐☐ 80 0.15 00000 80 85 P = 0.15 P = 0.25 30000 85 0.25 ☐☐☐☐
4. ABC Dog Food Company located in Ottawa sells large bags of dog food to warehouse clubs. ABC uses an automatic filling process to fill the bags. Weights of the filled bags are approximately normally distributed with a mean of 50 kilograms and a standard deviation of 1.25 kilograms. (a) What is the probability that a filled bag will weigh less than 49.5 kilograms? (b) What is the probability that a randomly sampled filled bag will weigh between 48.5 and 51 kilograms? (c) What is the minimum weight a bag of dog food could be and remain in the top 15% of all bags filled? (d) ABC is unable to adjust the mean of the filling process. However, it is able to adjust the standard deviation of the filling process. What would the standard deviation need to be so that 2% of all filled bags weigh more than 52 kilograms?
You have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $600. Each store charges 12 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A? From store B? From store C?
Spring 2019 Credit Card Products Collections DFD At Columbia Southern Bank, credit card accounts are booked and serviced at Individualized BankCard Services(IBS). If such accounts become delinquent, their information is sent to the collection system via the IBS FILE (see appendix D). This file is sent to the collection system on a daily basis. Besides being used to update the collection history database it is used to generate the IBS new accounts report. Recall that the predictive dialer software is used as part of the collection process. It involves using packaged software to contact delinquent borrowers. Using a file of telephone and account numbers the software takes into consideration how many collection agents are working at the given time and paces the calls accordingly. This will assure that an agent will be available to take the call if a delinquent customer answers the telephone when the dialer places the call. When a customer answers the…
From a risk management perspective, what are possible interpretations of 'probability'?
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand Probability 65 0.10 Stock 70 0.30 65 This textbook costs the bookstore $82 and sells for $112. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: 65 p=0.10 75 0.20 70 p=0.30 80 0.10 Demand 75 p=0.20 80 p = 0.10 85 p=0.30 85 0.30
The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 This textbook costs the bookstore $70 and sells for $95 Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund o $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 65 ? ? ? ? ?
ou have been pricing Samsung-Galaxy SmartWatch in several stores. Three stores have the identical price of $400. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C using the previous balance method. Assume you purchased the SmartWatch on May 5 and made a $100 payment on June 15. What will the finance charge for June be if you made your purchase from store A? From store B? From store C?
Multiple Choice, Select corret option :
48- The maximum number of sales that can occur in a given period to an individual or businesses that are willing to sell in a given market is known as: a. Product demand b. Market potential c. Market demand d. All the options are correct

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