Question: Up until three years ago, a firm opened an average of ten new retail stores a year. One of every ten new stores had to
Up until three years ago, a firm opened an average of ten new retail stores a year. One of every ten new stores had to be closed within two years due to poor sales. This percent success ratio was fairly steady for over years. Starting three years ago, the firm has opened new stores and each one had significant profits within six months. Management believes their recent success is not just a random event and that all future stores will be profitable. Thus, the managers have decided to open a minimum of new stores each year. The managers are suffering from:
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