Purchase Solution

Business Planning Based on Hypothesis Testing

Not what you're looking for?

Ask Custom Question

ABC Convenient stores uses fixed-time period model to determine order quantity for their popular chewing gum (Supergum). Daily demand for Supergum is 100 units with a standard deviation of 25 units. The review period is 10 days and lead time is 6 days. At the beginning of this review period there are 50 units in stock.

If 98% service probability is desired, how many units should be ordered?

Purchase this Solution
Solution Summary

We compute the number of units of chewing gum a company should manufacture in order to have a 98% chance of being able to satisfy its customers' demands over a given period of time.

Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

View More Free Quizzes
Related BrainMass Solutions

  • Statistics - Hypothesis Testing

    193219 Hypothesis Testing - Based on your readings in the white papers, text and lectures, how do you feel that the inferential statistical technique of Hypothesis Testing can be used by managers to make better business decisions?

  • Hypothesis Testing - Analysis Business-Related Problems

    Hypothesis testing is a mechanism based on which conclusions can be made about population parameters based on sample observations.

  • Hypothesis Testing in Excel for High Occupancy Lanes

    Planning for Metro Transportation District has depended on a well-established average of 3.4 passengers per HOV.

  • Research and Evaluation: Hypothesis Testing

    316607 Research and Evaluation: Hypothesis Testing a. What value is business research and hypothesis testing to a company? How long should it take a company to complete a scientific research study? b. How is hypothesis testing used in politics?

  • Testing of population proportion.

    The solution gives the details of testing of population proportion based on Z test. Null hypothesis, alternative hypothesis, critical value, z statistics and p value are given with interpretations.

  • Business Decision Making

    Provide some research-based examples of business applications of hypothesis testing. Discuss about two types of errors that might happen when testing a null hypothesis.

  • Sampling distribution and Hypothesis testing problem

    In a random sample of 1,100 likely voters, 572 said that they were planning to vote for the current mayor. Based on this sample, what is your initial hunch? Would you claim with 95% confidence that the mayor will win a majority of the votes?

  • Sample Annotated Bibliography

    Hypothesis thinking is scientific with drawing hypothesis and testing. These ways of considering strategic thought make it more viable for further study and practical in the changing way business must think and plan.

  • Reflection Project Undertaken

    Application of Hypothesis Testing at the Workplace: Hypothesis testing is a process for making coherent decisions on the effects of the reality.

  • Hypothesis Testing: Apple Inc.

    (need references) Attached This solution discusses statistical hypothesis testing for Apple based on sales data

View More Related Solutions