Problem 10-25 (Algorithmic)

The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $75, and it will be sold for $115. Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $50 per unit. Assume that the air conditioner demand follows a normal probability distribution u= 21with and o=9.

Note: Use Appendix B to identify the areas for the standard normal distribution. Round "cumulative standard normal probability" to two decimal places.

What is the recommended order quantity? Round your answer to the nearest whole number.

Q=24

What is the probability that Gilbert will sell all units it orders? Round your answer to two decimal places.