1. Logistic regression falls under the umbrella of discrete choice theory. Do some research and in your own words explain what this is. How is it useful in marketing? What does it do that regular regression cannot?
2. A jewelry store determines that the average demand for a diamond necklace it keeps in stock is 4 per period and the average demand during lead time is 3 per period. What is the standard deviation of demand during replenishment of the necklace if the standard deviations of demand per period and lead time are 1.2 and 1.5 respectively?