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Newsvendor keeps careful records of the number of papers he sells each day and th

arious costs that are relevant to his decision regarding the optimal number of newsp=
eers to purchase. For what reason might his results be inaccurate? What would he nee
-do in order to measure the daily demand for newspapers accurately?
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TI

User Malika
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1 Answer

5 votes

Final answer:

The newsvendor's results might be inaccurate due to errors in recording, as well as external factors. To measure demand accurately, the newsvendor should use proper data collection methods and analyze historical data.


Step-by-step explanation:

The newsvendor's results might be inaccurate due to various factors. For instance, there may be errors in recording the number of papers sold each day or the relevant costs. Additionally, external factors such as weather conditions, holidays, or local events can also affect the demand for newspapers and impact the accuracy of the measurements.

In order to measure the daily demand for newspapers accurately, the newsvendor would need to implement proper data collection methods. This could involve using electronic systems to automatically record sales, conducting surveys or interviews with customers, or analyzing historical data to identify patterns and trends.

Overall, it is important for the newsvendor to have reliable measurement methods in place to gather accurate information about daily newspaper demand and make informed decisions on the optimal number of newspapers to purchase.


Learn more about measuring daily demand for newspapers accurately

User Sakisk
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