Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2.
-What is the estimated first-year demand for your jogging shoes?
A)60,000 pairs of shoes
B)12,000 pairs of shoes
C)120,000 pairs of shoes
D)600,000 pairs of shoes

Question

Your goal is to sell jogging shoes to those 65 and other who live in Florida.  Here is some information you have collected:  (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida.  (3) Florida attracts 20% of all people who move when they retire.  (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older.  (5) You estimate that your sales will increase by 25% in year 2.
-What is the estimated first-year demand for your jogging shoes?
A)60,000 pairs of shoes
B)12,000 pairs of shoes
C)120,000 pairs of shoes
D)600,000 pairs of shoes

Quizplus · Accepted Answer

The first-year demand is calculated as 2% of the 600,000 joggers 65 and older in Florida, which equals 12,000 pairs of shoes.

Your Goal Is to Sell Jogging Shoes to Those 65