The sensitivity analysis in the Great Threads example was on the response rate. Suppose now that the

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The sensitivity analysis in the Great Threads example was on the response rate. Suppose now that the response rate is known to be 8%, and the company wants to perform a sensitivity analysis on the number mailed. After all, this is a variable under direct control of the company. Create a one-way data table and a corresponding XY chart of profit versus the number mailed, where the number mailed varies from 80,000 to 150,000 in increments of 10,000. Does it appear, from the results you see here, that there is an

“optimal” number to mail, from all possible values, that will maximize profit? Write a concise memo to management about your results.

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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