Concept explainers
Publisher Marjory Duffin reveals that JungleBooks.com may be launching a promotional scheme in which it will offer either two books for the price of one, or three books for the price of two. (Marjory can’t quite seem to remember which and is not certain whether they will go with the scheme at all.) John O’Hagan’s marketing advisers Flood and O’Lara seem to have different ideas as to how to respond. Flood suggests that the company counter by offering three books for the price of one, while O’Lara suggests that it offer instead a free copy of the Finite Mathematics Student Solutions Manual with every purchase. After a careful analysis, O’Hagan comes up with the following payoff matrix, where the payoffs represent the number of customers, in thousands, he expects to gain from JungleBooks.com:
Use the above information in Exercises 43–48.
Competition After a very expensive dinner at an exclusive restaurant, Marjory suddenly “remembers” that the JungleBooks.com CEO mentioned to her (at a less expensive restaurant) that there is only a 20% chance that JungleBooks.com will launch a “2 for the price of 1” promotion and a 40% chance that it will launch a “3 for the price of 2” promotion. What should OHaganBooks.com do in view of this information, and what will the expected effect be on its customer base?
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
Finite Mathematics
- You are offered a job as a set designer on two different movies. If company A offers to pay you $450 per week and company B offers $10 per hour, and both ask you to work 40 hours per week, which company is offering the better rate of pay?arrow_forwardYou are the buyer for OHaganBooks.com and need to refresh your stock of fantasy novels and historical fiction novels. You plan to buy from Duffin House Publishers and Higgins Press Publishers. Duffin House offers a package of 22 fantasy and 10 historical fiction books, for $150, and Higgins Press offers a package of 10 fantasy and 18 historical fiction books, for $100. If you need at least 4640 fantasy novel and 4800 historical fiction novels, how many packages from each should you purchase to minimize cost? Duggin Hours packages Higgins Press packagesarrow_forwardThe college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line. Three years later, the job market for the Class of 2003 was rather different. U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000. YOU ARE REQUIRED TO: (iv) Briefly…arrow_forward
- You are the buyer for OHaganBooks.com and need to refresh your stock of fantasy novels and historical fiction novels. You plan to buy from Duffin House Publishers and Higgins Press Publishers. Duffin House offers a package of 18 fantasy and 21 historical fiction books, for $175, and Higgins Press offers a package of 21 fantasy and 12 historical fiction books, for $125. If you need at least 5400 fantasy novel and 5100 historical fiction novels, how many packages from each should you purchase to minimize cost?arrow_forwardYou are the buyer for OHaganBooks.com and need to refresh your stock of fantasy novels and historical fiction novels. You plan to buy from Duffin House Publishers and Higgins Press Publishers. Duffin House offers a package of 18 fantasy and 21 historical fiction books, for $175, and Higgins Press offers a package of 21 fantasy and 12 historical fiction books, for $125. If you need at least 5400 fantasy novel and 5100 historical fiction novels, how many packages from each should you purchase to minimize cost? how many Duggin Hours packages? ____ how many Higgins Press packages?____arrow_forwardSteeve would like to own a stock in either EasySoft Corporation or SuperSneeze International. If EasySoft Corporation has stock price of $6.30 and earnings per share of $1.89, and SuperSneeze International has a stock price of $1.70 and earnings per share of $0.136. Which company would Steeve choose to invest in? Why?arrow_forward
- . After it's new expansion funded by donations from graduates of the MSDS program, Welsh-Ryan Arena will seat 28,000 people. Courtside seats cost $48, first level seats cost $36, and upper deck seats cost $24. The total revenue for a sellout is $750,000. If half the courtside seats, half the upper deck seats, and all the first level seats are sold, then the total revenue is $400,000. How many of each type of seat are there? Round your answers as needed.arrow_forwardThe past records of a supermarket show that its customers spend an average of $110 per visit at this store. Recently the management of the store initiated a promotional campaign according to which each customer receives points based on the total money spent at the store, and these points can be used to buy products at the store. The management expects that as a result of this campaign, the customers should be encouraged to spend more money at the store. To check whether this is true, the manager of the store took a sample of 14 customers who visited the store. The following data give the money (in dollars) spent by these customers at this supermarket during their visits. 106.13 107.43 124.68 124.88 101.17 72.75 85.45 86.05 100.4 98.84 101.63 95.56 89.40 119.52 Assume that the money spent by all customers at this supermarket has a normal distribution. Using a 2.5% significance level, can you conclude that the mean amount of money spent by all customers at this supermarket after the…arrow_forwardJo, a store owner, has an option of selling hot drinks or halu-halo during a championship game. The profits will depend on weather conditions. On a clear day, the profits will be P 1,500 and P9,000 on a rainy day if she sells hot drinks. If she sells halu-halo, her profits will be P 10,000 on a clear day and P5,000 an a rainy day. It was learned that during the time of the year 65% of the days are clear and 35%) are rainy. What type of refreshments should the owner sell? Make a decision tree and state your decision.arrow_forward
- A manufacturing company receives orders for vehicle audio systems from two assembly plants in Atlanta and Little Rock. Atlanta needs at least 45 audio systems and Little Rock needs at least 32 audio systems. The company can send at most 140 audio systems to these assemply plants. It costs $33 per system to ship to Atlanta and $40 per system to ship to Little Rock. Atlanta gives the manufacturing company $20 in rebates toward its products for each audio system they buy, while Little Rock gives $13 in rebates. The manufacturer estimates they need at least $1500 in rebates to cover products they plan to buy from the two plants. How many audio systems should be shipped to each plant to minimize shipping costs. What is the minimum cost? Number of audio systems to ship to Atlanta: Number of audio systems to ship to Little Rock: Minimum cost: $arrow_forwardA farmer in the Blue Mountains area of Jamaica wants to decide on the crop to plant next season. He wants to plant either ganja or coffee for export to the USA but need some help. He knows that if he plants ganja and the weather in the USA is predominantly cold he earns $10,000(US per month. If the weather is warm he earns $16,000. If he plants coffee and the weather is cold he earns 13,000 and if the weather is warm he earns $14000. In 40% of the years, the weather was cold and in 60 % the weather was warm. For $600, he could buy an expert weather forecast from CWD consulting. States of Nature with Profits ($) Does not include forecast cost Decision Alternatives Warm weather(W) Cold weather (C) Ganja…arrow_forwardA ticket between Corellia and Dantooine (located in a galaxy far far away) sells for $150. The plane can hold 100 people. It costs $8000 to fly an empty plane. Each person on the plane incurs variable costs of $30 (for food and fuel). If the flight is overbooked, anyone who cannot get a seat receives $300 in compensation. On average, 95% of all people who have a reservation show up for the flight. To maximize profit, how many reservations for the flight should you book? Hint: You can assume that the number of people that show up for a flight follows a binomial random variable.arrow_forward
- Algebra: Structure And Method, Book 1AlgebraISBN:9780395977224Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. ColePublisher:McDougal Littell