Question

A hardware store carries a very popular leaf blower. However, the store's owner does not have room to keep a large inventory of extra leaf blowers. Autumn us approaching and the owner needs to decide the minimum and maximum inventory to have in stock to meet consumer needs at both low-and-high-demand items.

How would quantitative analysis improve decision making?

A. The owner can build a model that determines the effect of seasonality on demand

B. The owner will find the correlation between sales and seasonality

C. The owner will know exactly how many blowers to sell during each period

D. The owner can find the cause-and-effect relationship between sales and seasonality

Answer 1

In this situation shop keeper will make a detailed quantitative analysis of the two variables like sales and seasonality. A quantitative analysis will help shop keeper to take a accurate and good decision. He will be taking this dicision by considering all the quantitative analysis .

So here in this case ,The owner can find the cause and effect relationship between sales and seasonality by the quantitative analysis. By considering the correlation between things, shop keeper can take better decisions.