Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

paige Turner is the production manager at Book Galore. She estimates that the average sales of books is 7,050 and the standard deviation is 750

paige Turner is the production manager at Book Galore. She estimates that the average sales of books is 7,050 and the standard deviation is 750 books. Sales follow a normal distribution. . What is the probability that book sales will be greater than 8,250? What is the probability that sales will be greater than 6,750? What is the probability that sales will be less than 7,350? What is the probability that sales will be less than 6,450? Paige Turner built a reasonably complex simulation model for Books Galore. It contains parameters and assumptions about production batch sizes and frequency of production runs to avoid bottle necks. When she presented the base-case results of the model to the organisation's planning committee, the general response was to drop a product which would result in closing a manufacturing plant. She was shocked by this reaction even though the model did show that the product was unprofitable. What would have been a more effective manner of presenting the model and results? (5 marks) Robin Banks from the human resource department used a regression approach to estimate costs based on staff numbers, number of visitors and staff costs at Books Galore. The model results included: R2 of 0.86; multiple R of 0.929 and adjusted R square of 0.7269. Of the 100 observations only 15 were within the relevant range. Discuss what these statistical results indicate and how they are related. (6 marks) In the answer, write the letter and your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Students also viewed these General Management questions