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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A locally owned department store samples two customers in each of five geographic areas to estimate consumer spending in its home appliances department. It is estimated that these customers are a good sample of the 10,000 customers the store serves. The number of customers in each area is C1= 1,500, C2= 2,500, C3Â =1,000, C4Â =3,000, and C5Â =2,000. It is found that the two consumers have the following budgets in dollars for home appliances per year: B11= 100, B12Â =150; B21= 75, B22Â =100; B31Â =125, B32Â =125; B41Â =100, B42Â =120; and B51Â =120, B52Â =125.
a. Using the Huff retail location model, estimate annual home appliance sales for the store.
b. Bull’s-Eye, a chain department store, opens a branch in a shopping complex near by. The Bull’s-Eye branch is three times larger than the locally owned store. The travel times in minutes from the five areas to the two stores ( j 1 for the locally owned store,Â
Â
 Use the Huff retail location model to estimate the annual consumer expenditures in the home appliance section of each store assuming that x= 1.
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