Author Question: A sample of 61 observations yielded a sample standard deviation of 6 . If we want to test H0: 2 = ... (Read 91 times)

rosent76 · **on:** Jun 24, 2018

A sample of 61 observations yielded a sample standard deviation of 6 . If we want to test H0: 2 = 40, the test statistic is
a. 54.
b. 9.15.
c. 54.90.
d. 9.

Question 2

Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is 54 . It costs 72 to place an order, and annual holding costs are charged at 22 of the cost per unit. The lead time is two weeks.
a. What is the EOQ?
b. What is the reorder point?
c. What is the cycle time?
d. What is the total annual cost?

k2629 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

a

Answer to Question 2

a. Q = 710.1
b. r = 1600
c. T = 710.1/800 = .8876 weeks or .8876(7) = 6.2 days
d. TC = .5(710.1)(.22)(54) + (41600/710.1)(72) = 8435.99