Question: Steve Smith is a car sales agent at a Ford
Steve Smith is a car sales agent at a Ford dealership. He earns a salary and benefits, but a large portion of his income comes from commissions: $350 per vehicle sold for the first five vehicles in a month and $400 per vehicle after that. Steve's historical sales can be well described with a Poisson distribution with mean 5.5; that is, on average, Steve sells 5.5 vehicles per month. On average, how much does Steve earn in commissions per month?
Answer to relevant QuestionsYou are the store manager at a large furniture store. One of your products is a study desk. Weekly demand for the desk is normally distributed with mean 40 and standard deviation 20. The lead time from the assembly plant to ...You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron, a spice (generally) worth more by weight than gold. You order saffron from an overseas ...Livingston Tools, a manufacturer of battery-operated, hand-held power tools for the consumer market (such as screwdrivers and drills), has a problem. Its two biggest customers are "big box" discounters. Because these ...WAMB is a television station that has 25 thirty-second advertising slots during each evening. It is early January and the station is selling advertising for Sunday, March 24. They could sell all of the slots right now for ...Handi Inc., a cell phone manufacturer, procures a standard display from LCD Inc. via an options contract. At the start of quarter 1 (Q1), Handi pays LCD $4.50 per option. At that time, Handi's forecast of demand in Q2 is ...
Post your question