Business Statistics Quantitative PDF

Business Statistics Quantitative
Student name:
Student number:
Lecturer name:
Date: 1st November 2018

1. I deal with selling saloon business and the business name goes by “Anyango’s Beauty
Salon”. I have branches in various locations within the town and am now considering to
expand the business to a neighboring town.
2. I have three alternatives to choose from:
i) I can decide to expand to the neighboring town with three employees.
ii) I also have a choice of piloting the expansion with just one employee
iii) The other option that I have is to maintain the status quo, that is, I don’t expand
(get ways of making customers come to my location)
Three states of nature that I would be facing are:
i) Serious demand for executive beauty services
ii) Moderate demand for executive beauty services
iv) Nobody cares about executive beauty services
3. On a typical “awesome” day, each employee would generate $350 and it costs about
$150 for electricity and staffing. This leaves us with a net profit of $200 per day. On a
typical “moderate” day, each employee would generate $200 and costs about $150 for
electricity and staffing. This leaves us with a net profit of $50 per day. Lastly on a typical
“poor” day, each employee would generate $50 and it costs about $150 for electricity and
staffing. This leaves us with a net loss of $100 per day. I will then set up my decision
table based on the above profit/losses per new employee as follows;
4. Typical decision table
Awesome
Executive
demand
Moderate
Executive
demand
Poor
Executive
demand
3 new
employees
600 150 -300