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lisabon 2012 [21]
3 years ago
7

A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products

is 0.8. The demand forecast for both products is 9,000 units and both are normally distributed. Product X has more uncertain demand in the sense that it has the larger standard deviation. Of which of the two products does the newsvendor order more
A. Product A, because it has less certain demand.
B. Product B, because it has more certain demand.
C. The order quantities are the same because they have the same critical ratio.
D. More information is needed to determine which has the higher order quantity.
Business
2 answers:
Naily [24]3 years ago
7 0

Answer:

Take note that you used X and Y as the name of the two products but the options provided was changed to product A and B. Not withstanding, it doesn't affect the answer.

The correct answer is option (A) Product A, because it has less certain demand

Explanation:

A. Product A, because it has less certain demand.

Explanation:

Product X and Y both have the same critical ratio and both are normally distributed. Although, the demand for product X is uncertain but due to it's  large standard deviation of demand, the optimal order quantity is greater.

When a product has uncertain demand, it means that the seller can not predict the rate of demand of that product by the consumers.

Uncertain demands helps sellers to maximize profit or minimize cost.

In order to maximize profit, uncertain demand is put into consideration by the news vendor.

Tamiku [17]3 years ago
5 0

Answer:

A. Product A, because it has less certain demand.

Explanation:

According to the statement, the product X (A) is the one with the highest proportion of standard deviation, that is, it has a more uncertain demand. Taking into account this condition, it is expected that the number of optimal products will be greater because it has an average and critical relationship. For this reason, it is expected that the news seller will lean towards the first product, since it will generate higher income as explained at the beginning.

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If the prepaid rent account before adjustment at the end of the month has a debit balance of $2,800, representing a payment made
vampirchik [111]

Answer:

$2,100

Explanation:

Data provided in the question

Prepaid rent account before adjustment at the end of the month = $2,800

And, the monthly rent is $700

So, the amount of prepaid rent after adjustment is

= Prepaid rent account before adjustment at the end of the month - the monthly rent

= $2,800 - $700

= $2,100

Basically we deduct the monthly rent from the prepaid rent balance before adjustment

7 0
3 years ago
What is the name for a treasury certificate given by the government to an investor in exchange for money? A. Earned income B. Ca
sdas [7]
C. Government bond would be the correct answer
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If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new dep
rewona [7]

Answer:

b) decline

Explanation:

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will <u>decline</u>. This happens because people lost trust and hastily withdrawn their money deposited with the bank.

4 0
3 years ago
Suppose the Federal Reserve sets the reserve requirement at 12 percent, banks hold no excess reserves, and no additional currenc
Naily [24]

Answer:

See below.

Explanation:

For a)

The money multiplier or the credit multiplier can be calculated as follows,

Money multiplier = 1 / reserve ratio

Multiplier = 1 / 0.12 = 8.33 times

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For a negative $80 million change by the Fed there will be a total change in the economy of 80 * 8.33 = $666.4 million.

A -80 million change will contract money supply by $666.4 million in the economy.

For c)

This can be calculated by dividing the target by the money multiplier.

So to achieve a change of $500m the Fed will expand the money supply by

= 500 / 8.33 = $60.02m.

Hope that helps.

8 0
3 years ago
Stormy Corporation has two service departments (S1 and S2) and two production departments (P1 and P2), and uses the step-down me
Marianna [84]

Answer:

E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.

Explanation:

As S1 gives more service, So it would be allocated first

Here

S1 cost of $280,000 would be allocated to S2 P1 and P2 based on number  of employees

The total employees in S2 P1 and P2 is

= 20 + 50 + 70

= 140

And, the Cost to be allocated per employee is

= $280,000 ÷ 140

= $2,000

Now cost received by S2 is

= $2,000 × 20

= $40000

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And, the cost received by P2 is

= $2,000 × $70

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So this would be allocated to P1 and P2 as S1 has already allocated  

Hence, option D is correct

3 0
3 years ago
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