You are thinking of opening a small copy shop. It costs $5000 to rent a copier for a year and costs $0.03 per copy to operate the copier. Other fixed costs of running the store will amount to $400 per month. You plan to charge an average of $0.10 per copy, and the store will be open 365 days per year. Each copier can make up 100,000 copies per year. a) For 1 to 5 copiers rented and daily demands of 500, 1000, 1500, 2000 copies per day, compute annual profit. That is, compute annual profit for each of these combinations of copiers rented and daily demand. b) If you rent 3 copiers, what daily demand for copies will allow you to break even? c) Graph profit as a function of the number of copiers for a daily demand of 500 copies; for a daily demand of 2000 copies.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Excel spreadsheet question
You are thinking of opening a small copy shop. It costs $5000 to rent a copier for
a year and costs $0.03 per copy to operate the copier. Other fixed costs of running
the store will amount to $400 per month. You plan to charge an average of $0.10
per copy, and the store will be open 365 days per year. Each copier can make up
100,000 copies per year.
a) For 1 to 5 copiers rented and daily demands of 500, 1000, 1500, 2000 copies
per day, compute annual profit. That is, compute annual profit for each of
these combinations of copiers rented and daily demand.
b) If you rent 3 copiers, what daily demand for copies will allow you to break
even?
c) Graph profit as a
copies; for a daily demand of 2000 copies.
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Where did you get the $1,000 on the daily demand (trail value)
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