To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on.
A) survival-age distribution
B) life-cycle ratio
C) obsolescence rate
D) business turnover ratio
E) product-performance usage

Question

Quizplus · Accepted Answer

To estimate replacement sales, management must research the product's survival-age distribution, which tells them the number of units that fail in each year (or age) of use. This information allows them to project how many units will need to be replaced in the coming years. Life-cycle ratio, obsolescence rate, business turnover ratio, and product-performance usage do not directly provide information about the number of units that will need to be replaced.

To Estimate Replacement Sales, Management Must Research the Product's ________