Randolph Sporting Goods sells hockey sticks at a price of 80

Randolph Sporting Goods sells hockey sticks at a price of $80 a month. In a average month they sell 3, 000 of these sticks with fixed expenses of $27, 300 and total variable expenses of $201, 000 a month. It currently earns a profit of $11, 700 a month. Given the current expenses and sales price what is Randolphs Sporting Goods break even amount? How many units must Randolph produce and sell to make a profit of $18,000? Suppose that variable costs increase by $4 per unit. What is Randolphs new breakeven point? Assume that the cost structure is the same as in a). If the company can only sell 3,000 units what price does it need to charge to make a profit of $18,000? A market research study is being conducted to determine if a product modification will be well received by the public. A total of 1,000 consumers are questioned regarding this product. The table below provides information regarding this sample. What is the probability that a randomly selected male would find this change unfavorable (negative)? What is the probability that a randomly selected person would be a female who had a positive reaction? If it is known that a person had a negative reaction to the study, what is the probability that the person is male?

Solution

The first problem is not of Statistics I suppose.

So I skip it.

Problem 2:

Ans:

(a) P{A randomly selected male will answer as negative}

= Total no. of males answered it neagtively / Total no. of males = 100/400= 0.25 [ By classical Theory of Probability ] .

(b) P[ a randomly selected person would be a female who had a positive reaction ]

= Total no of females who had a positive answer / Total no. of persons= 260 / 1000=0.26

(c) P[The person is male given he has a negative reaction ]

= Total no.of males had an negative answer / Total no. of person have negative answer = 100/220 = 5/11 .