1. Assessing Profitability of a Newsboy-Type Product with Normally Distributed Demand Based on Multiple Samples.
- Author
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Su, Rung-Hung, Yang, Dong-Yuh, and Pearn, W.L.
- Subjects
- *
PROFITABILITY , *NEWSPAPER carriers , *DISTRIBUTION (Probability theory) , *ECONOMIC demand , *PARAMETER estimation , *HYPOTHESIS - Abstract
This article develops a new index “Achievable Capacity Index,”IA, which can accurately measure the profitability of newsboy-type product with normally distributed demand. An unbiased and effective estimator ofIAis derived to estimate actualIAas the parameters of distribution are unknown. Practically, the market information regarding demand is obtained from multiple samples rather than single sample. Therefore, we estimate and testIAbased on multiple samples. A hypothesis testing for examining whether the profitability meets designated requirement is presented. Critical values of the test are calculated to determine the evaluation results. Finally, a real case on the sales of donuts is presented to illustrate the applicability of our approach. [ABSTRACT FROM AUTHOR]
- Published
- 2013
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