A national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the location coordinates, are given below. $$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Market } \ \text { Segment } \end{array} & \mathrm { x } & \mathrm { y } & \begin{array} { l } \text { Number of } \ \text { Customers } \end{array} \ \hline 1 & 2 & 18 & 1200 \ 2 & 15 & 17 & 700 \ 3 & 2 & 2 & 1800 \ 4 & 14 & 2 & 2500 \ \hline \end{array}$$ Which would be the best location using the center of gravity method? A) x

Question

A national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the location coordinates, are given below. $$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Market } \ \text { Segment } \end{array} & \mathrm { x } & \mathrm { y } & \begin{array} { l } \text { Number of } \ \text { Customers } \end{array} \ \hline 1 & 2 & 18 & 1200 \ 2 & 15 & 17 & 700 \ 3 & 2 & 2 & 1800 \ 4 & 14 & 2 & 2500 \ \hline \end{array}$$ Which would be the best location using the center of gravity method? A) x < 9, y < 6 B) x < 11, y > 8 C) x > 10, y < 5 D) x < 10, y > 5

Quizplus · Accepted Answer

The center of gravity is calculated as (x̄, ȳ) = (Σxiwi/Σwi, Σyiwi/Σwi), where wi is the number of customers in segment i. Plugging in the values, we get (x̄, ȳ) = (10.75, 5.25). Therefore, the best location would be in the region x < 10, y > 5.

A National Drugstore Chain Prefers to Operate One Outlet in a Town