1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
irakobra [83]
3 years ago
5

Aquaguard manufactures three models of water purifiers in three separate plants at Taiwan. These plants serve the demand in Euro

pe. All three models sell at a unit price of $100 and the holding cost is 5% of the selling price per month. The monthly demand for these models is normally distributed with the following parameters:
Model 1: Mean 1000, SD 300
Model 2: Mean 1000, SD 300
Model 3: Mean 1000, SD 300
The demand for Model 1 and Model 2 has a correlation coefficient of (-) 0.35, while that for Model 3 is independent of the other two models. The company wishes to make two of the models in one plant by using flexible technology.
Required:
a) Which two models should Aquaguard choose in order to minimize production variability in the new plant? (as measured by the coefficient of variation).
Business
1 answer:
Zanzabum3 years ago
5 0

Answer:

Aquaguard may choose any of the  two models to minimize the production variability in the new plant.

Explanation:

Model 1: Mean = 1000, Standard Deviation(SD) = 300

Model 2: Mean = 1000, SD = 300

Model 3: Mean = 1000, SD = 300

Coefficient of variation for model 1

C.V = ( SD ÷ Mean) × 100

= ( 300 ÷ 1000 ) × 100

= 30 %

Coefficient of variation for model 2

= ( 300 ÷ 1000 ) × 100

= 30 %

Coefficient of variation for model 3

= ( 300 ÷ 1000 ) × 100

= 30 %

 We conclude that all the models have same effect .

You might be interested in
The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market economy
Ray Of Light [21]

Answer:

Consumer Sovereignty

Explanation:

Consumer sovereignty in production refers to the controlling power of consumers and that the production of goods and services is determined by the consumers' demand.

In the given scenario, The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market economy, and hence this statement best describes the concept of Consumer Sovereignty

8 0
3 years ago
Two weeks ago Acme Electronics announced that it had developed a new chip design which was being considered by major companies f
astraxan [27]

Answer: delayed reaction.

Explanation:

The scenario depicted in the question is an example of a delayed reaction. Before the announcement was made that a new chip design had been developed, Acme common stock closed at $20 but since the announcement was made, there has been an increase in the closing price of the stock .

This shows that the information flow had an effect on the price of the stock and this led to the delay in market reaction. Therefore, this is referred to as a delayed reaction.

7 0
3 years ago
From a business perspective, ___________ taxes are analogous to the personal property taxes paid by individuals.
Anvisha [2.4K]

Answer:

c. inventory

Explanation:

As per the business perspective, the inventory taxes should be analogous for the personal property taxes that paid by the individuals as the inventory taxes is involved in the business property tax i.e. tangible as well as personal

Therefore as per the given options, the option c is correct

And, the other options are incorrect

5 0
3 years ago
What important technology has done the most
laiz [17]
The answer is Wireless networks
8 0
3 years ago
What item can a consumer expect to find in a retail store
Annette [7]
It would be "Meat to cook for dinner at home" that a consumer expect to find in a retail store since retail stores market to individuals and families, not large-scale projects. 
5 0
3 years ago
Read 2 more answers
Other questions:
  • Last year, which is used as the base year, a firm had cash of $52, accounts receivable of $223, inventory of $509, and net fixed
    10·1 answer
  • Help with question no.19?
    5·1 answer
  • The application of moral and ethical analysis to a situation is usually called ethical. Ethics is rooted in the idea that every
    10·1 answer
  • Carson Lee, a staff accountant, is a working on some research for his partner, Joe Davis. Joe has asked Carson to find the prope
    9·1 answer
  • A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager chan
    5·1 answer
  • You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives that all
    5·1 answer
  • A change in interest rates would shift the consumption schedule and the saving schedule ______; a change in taxes would shift th
    12·1 answer
  • Oil Well Supply offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7.73 percent. The bonds matur
    14·1 answer
  • Company purchased equipment on January​ 1, 2017 for $ 600 comma 000. The residual value is $ 60 comma 000 and the estimated usef
    14·1 answer
  • The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were origina
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!