A national business has a small East Coast regional office responsible for 1059 customers and a larger West Coast regional office responsible for 9041 customers. The table shows the number of customers handled by each regional office.
The national sales manager makes 100 visits total each year to the regional offices, apportioned between the two offices with respect to the number of customers fo which each is responsible.
Suppose that a new Central States regional office is opened with 510 brand-new customers, resulting in a distribution shown in the following table.
The sales manager adds 5 additional annual visits to his schedule for the Central States regional office. Use Hamilton's method to apportion the sales manager's visits for when there were two regional offices and for when there were three regional offices. Then decide which, if either, of the following statements is true.
I. The new-states paradox occurs, with respect to the sales manager's visits, when the third regional office is added.
II. When the third regional office is added, the East Coast office will get one more visit from the sales manager than before.
◦ I is false and II is true.
◦ I is true and II is false.
◦ I and II are both true.
◦ I and II are both false.
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International Business: The Challenges of Globalization, 8th Edition