AnswersFinancial MathModeling for Business: Part Two

Practice Test Answers

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21
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Can the profit be improved from Point E, and if yes, what should EcoGrow do to improve the profit?

A
yes; decrease the quantity produced to around 23
B
yes; increase the quantity produced to more than 34
C
profit cannot be improved
D
yes; decrease the quantity produced to less than 12
22
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A retail company, "StyleWave," is planning whether to open a new store location in a different city or invest in expanding its e-commerce platform. The management team needs to evaluate both options regarding potential sales growth and operational costs. Sort the questions according to whether they are statistical questions.

Answer:

How many employees are currently working in the company's e-commerce department?|What annual revenue is generated from the company’s existing physical stores in similar regions?,What is the average increase each year in the price per square foot of commercial property of existing stores?,How have online sales trends changed in the last five years in regions without physical stores?

23

A grocery store is evaluating whether to expand its organic product offerings. Which statistical question would be most relevant to making this decision?

A
How do sales of organic products compare to nonorganic products?
B
How many organic products are currently available in the store?
C
What is the cost difference between organic and nonorganic products?
D
What are the most common customer inquiries about organic products?

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Practice Test Answers — Financial Math