Next the director assumes that the benefits package

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Unformatted text preview: ze of the clothing department and an increase in the size of the home­ furnishings department. This recommendation is problematic in two critical respects. In the first place, the author’s conclusion that consumers are choosing to buy products for their homes instead of clothing is based upon too small a sample. Data gathered from a three­month period is insufficient to establish the conclusion drawn from it. It is quite possible that the three­month period chosen is idiosyncratic and not representative of entire year’s sales. If so, reducing the size of the clothing departments and enlarging the home­ furnishings departments may be a costly mistake. In the second place, the data collected during the three month period may be biased. The fact that the data reflects sales in local stores is cause for concern. It is possible that the sales trend in a particular location is not representative of sales in other regions. For example, sales of clothing in Florida during the winter months are likely to be quite different from sales of clothing in Alaska during the same period. In con...
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This note was uploaded on 05/05/2009 for the course ECAS asdfasdf taught by Professor Asdfaf during the Spring '09 term at Academy of Art University.

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