Subject: Applied Statistical Methodology for Business Research Design
- Develop and write a 3-5 page APA 7 th ed. Formatted paper:
Using your textbook, LIRN-based research, and the Internet, provide a complete solution to the Case Problem (Specialty Toys) presented at the end of Chapter 6 in the textbook. Include in-text citations.
Prepare a managerial report that addresses the following issues and recommends an order quantity for the weather Teddy product. In your report, answer the following five questions:
- Use the sales forecaster’s prediction to describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and show its mean and standard deviation.
- Compute the probability of a stockout for the order quantities suggested by members of the management team.
- Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.
- One of Specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stockouts. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?
- Provide your own recommendation for an order quantity and note the associated profit projections. Provide a rationale for your recommendation.
Please be sure to include in-text citations and peer reviewed references in APA format in your discussion post.