A bakery shop is trying to decide how many doughnuts (dozens…
A bakery shop is trying to decide how many doughnuts (dozens) to make each day. The cost to make a dozen doughnuts is $5.00. If sold that day, the doughnuts can be sold for $10.00 per dozen. On the other hand, excess doughnuts must be sold at the day-old discount price of $4.00 per dozen. Based on past experience, the manager estimates the probabilities for demand shown below. Demand (doz). Probability 20 .10 21 .15 22 .30 23 .20 24 .15 25 .05 Calculate the optimal number of doughnuts (dozens) to make each day using the service probability ratio method. Type in a few calculations and results to show your solution method and indicate the optimal quantity that you have determined. (Note: it is not necessary to type in all the calculations and details.)
Read DetailsSuppose that demand has been fluctuating randomly over the p…
Suppose that demand has been fluctuating randomly over the past six months and is expected to continue similarly through the remainder of the year. Given this information, which of the following forecasting methods would be most appropriate for forecasting demand?
Read DetailsIn a gallop poll, 750 adults were asked if they consume alco…
In a gallop poll, 750 adults were asked if they consume alcoholic beverages and 440 of them said “yes”. Follow the steps below to construct a 90% confidence interval for the proportion of all adults who consume alcoholic beverages. a) State the value of the sample proportion. (Round to three decimal places) {#1} b) Find the critical value, \( z_{\alpha/2} \). (Round to three decimal places) {#2} c) Calculate the margin of error. (Round 2 decimal places) {#3} d) Using your values from parts (a) and (c), find the limits of the confidence interval. Lower Limit: {#4} Upper Limit: {#5}
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