The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured
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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 $80, and it will be sold for $125. 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 with µ = 20 and σ = 8.
a. What is the recommended order quantity?
b. What is the probability that Gilbert will sell all units it orders?
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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a c o 80 50 30 c u 125 80 45 For the cumula...View the full answer
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Related Book For 
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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