Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[30 marks} ABC toy store in Ottawa has two toy suppliers, one in Montreal and one in Toronto. The two suppliers supply the same type

image text in transcribed
[30 marks} ABC toy store in Ottawa has two toy suppliers, one in Montreal and one in Toronto. The two suppliers supply the same type of toys. The Montreal supplier supplies 00% of the toy store's total toys and the Toronto supplier supplies 40%. All toys from the two suppliers are sent to regional warehouses, where they are intermin gled. After extensive study, the quality assurance manager has determined that 05% of the toys supplied by Montreal supplier and 00% of the toys supplied by Toronto supplier are good based on customer satisfaction. \"To encourage the two suppliers to produce better toys, when the toy store sells a good quality toy, the manager of the toy store would like to offer $100 to the two suppliers as a reward. The manager of the toy store would like to distribute the reward $100 fairly between the two suppliers. Two students A and B in ECDN 2210 class suggested the following two methods: Student A: Distribute $00 and $40 of the rewards $100 to the two suppliers, respec tively, since they supply 0091i and 40% of the total toys, respectively. Student E: Distribute n.a2fui.m percent and \"Hg-flaw percent of the reward to the two suppliers, respectively, since the good quality rates of the toys supplied by the two suppliers are 05% and 00%, respectively. [a] 1:10 marks} 1Which one of the two students do you agree with? Why or why not? {b} (20 marks} If you do not agree with any one of the two students, what are your suggestions? State your method clearly

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cambridge International AS & A Level Mathematics Probability & Statistics 1 Coursebook

Authors: Dean Chalmers, Julian Gilbey

1st Edition

1108407307, 978-1108407304

Students also viewed these Economics questions