You are in charge of Anusmaran (reunion event for your college) at Chennai. Although large attendance is expected, you will not know until the evening of the event exactly how many people would attend. Your understanding with the caterer is that you will have to communicate him, one week before the event, the number of dinners that would be served at the event. The price for these dinners will be Rs 400 each. If fewer people show up than the committed number, you are still required to pay for the committed number. If more people attend than your committed number, they will be served at a cost of Rs 600 each. Your judgment for the single period about the number attending can be described by normal distribution with a mean of 200 people and standard deviation of 80. 

Suppose the entire cost of dinner is being borne by alumni association. What kind of number will you commit to the caterer? 

Suppose the event is organized by your college and college wants to use this event for raising funds and each person attending the event is charged Rs 500. What kind number you would commit to caterer. You can assume that likely number of people attending the event does not change based on this pricing policy.

Answer rating: 100% (QA)

1 When the entire cost of dinner is borne by the alumni association your primary concern is to minim... View the full answer