Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me understand as I am very lost on the subject matter. A locally owned department store samples two customers in each of five

image text in transcribedimage text in transcribed

Please help me understand as I am very lost on the subject matter.

A locally owned department store samples two customers in each of five geographic areas to estimate consumer spending in its home appliances department. It is estimated that these customers are a good sample of the 10,000 customers the store serves. The number of customers in each area is C1=1,500,C2=2,500,C3=1,000,C4=3,000, and C5=2,000. It is found that the two consumers have the following budgets in dollars for home appliances per year: B11=100,B12=150;B21=75,B22=100;B31= 125,B32=125;B41=100,B42=120; and B51=120,B52=125. a. Using the Huff retail location model, estimate annual home appliance sales for the store. b. Bull's-Eye, a chain department store, opens a branch in a shopping complex nearby. The Bull's-Eye branch is three times larger than the locally owned store. The travel times in minutes from the five areas to the two stores (j=1 for the locally owned store, j=2 for Bull's-Eye) are T11=20,T12=15;T21=35,T22=20;T31=30,T32=25;T41=20,T42=25; and T51 =25,T52=25. Use the Huff retail location model to estimate the annual consumer expenditures in the home appliance section of each store assuming that =1. Use your results for homework problem 8.8 to answer the following questions. For store 1 (existing locally owned store) assume that S1=1 and for store 2 (Bull's Eye new store) assume that S2=3 (three times the size) and lambda equals one. Question 22 ( 2 points) [ What are the annual home appliance sales (in thousands)? Your Answer: Answer Question 23 (2 points) What are the expected sales (in 1,000's) for customer area 1? Your Answer: Answer Question 24 ( 2 points) What are the expected sales (in 1,000's) for customer area 2? Your Answer: Answer Question 25 ( 2 points) [ What are the expected sales (in 1,000's) for customer area 3? Your Answer: Answer Question 26 (2 points) What are the expected sales (in 1,000's) for customer area 4? Your Answer: Answer Question 27 (2 points) What are the expected sales (in 1,000's) for customer area 5? Your Answer: Answer Question 28 (2 points) [ What are the expected sales (in 1,000's) for the local store? Your Answer: Answer Question 29 ( 2 points) E What are the expected sales (in 1,000's) for the Bull's Eye store? Your

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

Recommended Textbook for

Project Management The Managerial Process

Authors: Erik Larson, Clifford Gray

6th edition

1259186407, 978-0078096594, 78096596, 978-1259186400

More Books

Students also viewed these General Management questions

Question

14 What are surrogate variables? How are they determined?

Answered: 1 week ago