Each day A Baker's Wife makes donuts that sell for $0.80 and cost $0.25 to make....

   

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Each day A Baker's Wife makes donuts that sell for $0.80 and cost $0.25 to make. Any unsold donuts are donated. Demand for donuts is highly variable. The bakery has collected two months of demand (and missed sales). The rule of thumb has been to make 1.5 times the average number of donuts demanded on a typical day. This results in average profit of about $80 a day. Does this policy makes sense, and if not, what production maximizes profit? Enter answers to the following questions in the corresponding answer boxes. 1) (10 Points) Calculate the mean. standard deviation, median, minimum and maximum for donut demand the past two months. Mean Standard Deviation Median Minimum Maximum Assuming that demand is normally distributed with the mean and standard deviation found in Part 1, please calculate the associated demand for the following random variables U(0,1) from the associated CDF. 2) (10 Points) Calculate the demand from the CDF of the normal distribution with mean and standard deviation from Part 1. Randvom Variable U(0,1) Demand 0.1 52 0.2 0.3 0.4 OOO OO 0.5 0.6 0.7 0.8 to co 0.9 Each day A Baker's Wife makes donuts that sell for $0.80 and cost $0.25 to make. Any unsold donuts are donated. Demand for donuts is highly variable. The bakery has collected two months of demand (and missed sales). The rule of thumb has been to make 1.5 times the average number of donuts demanded on a typical day. This results in average profit of about $80 a day. Does this policy makes sense, and if not, what production maximizes profit? Enter answers to the following questions in the corresponding answer boxes. 1) (10 Points) Calculate the mean. standard deviation, median, minimum and maximum for donut demand the past two months. Mean Standard Deviation Median Minimum Maximum Assuming that demand is normally distributed with the mean and standard deviation found in Part 1, please calculate the associated demand for the following random variables U(0,1) from the associated CDF. 2) (10 Points) Calculate the demand from the CDF of the normal distribution with mean and standard deviation from Part 1. Randvom Variable U(0,1) Demand 0.1 52 0.2 0.3 0.4 OOO OO 0.5 0.6 0.7 0.8 to co 0.9