# Question: Based on a demand analysis forecast a factory plans to

Based on a demand analysis forecast, a factory plans to produce 80,000 video game cartridges this quarter, on average, with an estimated uncertainty of 25,000 cartridges as the standard deviation. The fixed costs for this equipment are $72,000 per quarter, and the variable cost is $1.43 per cartridge produced.

a. What is the forecast expected total cost of the cartridges produced?

b. What is the uncertainty involved in this forecast of total cost, expressed as a standard deviation?

c. Find the coefficient of variation for the number of cartridges produced and for the total cost. Write a paragraph interpreting and comparing these coefficients of variation.

d. After the quarter is over, you find that the factory actually produced 100,000 cartridges. How many standard deviations above or below the average is this figure?

e. Suppose the firm actually produces 200,000 cartridges. How many standard deviations above or below the average is this figure? Would this be a surprise in light of the earlier forecast? Why or why not?

a. What is the forecast expected total cost of the cartridges produced?

b. What is the uncertainty involved in this forecast of total cost, expressed as a standard deviation?

c. Find the coefficient of variation for the number of cartridges produced and for the total cost. Write a paragraph interpreting and comparing these coefficients of variation.

d. After the quarter is over, you find that the factory actually produced 100,000 cartridges. How many standard deviations above or below the average is this figure?

e. Suppose the firm actually produces 200,000 cartridges. How many standard deviations above or below the average is this figure? Would this be a surprise in light of the earlier forecast? Why or why not?

## Answer to relevant Questions

For the annual salary levels: a. Find the range. b. Find the standard deviation. c. Find the coefficient of variation. d. Compare these three summary measures. What do they tell you about typical salaries in this ...For the experience variable: Answer the parts of exercise 2. a. Construct a histogram and indicate the average and standard deviation. b. How many employees are within one standard deviation from the average? How does this ...a. What is a probability tree? b. What are the four rules for probability trees? a. What is the complement of an event? b. What is the probability of the complement of an event? Your firm is planning a new style of advertising and figures that the probability of increasing the number of customers is 0.63, while the probability of increasing sales is 0.55. The probability of increasing sales given an ...Post your question