Belt Office Supplies sells desks, lamps, chairs, and other related supplies. The company's executive lamp sells for

Question:

Belt Office Supplies sells desks, lamps, chairs, and other related supplies. The company's executive lamp sells for $45, and Elizabeth Belt has determined that the break-even point for executive lamps is 30 lamps per year. If Elizabeth does not make the break-even point, she loses $10 per lamp.

The mean sales for executive lamps has been 45, and the standard deviation is 30.

(a) Determine the opportunity loss function.

(b) Determine the expected opportunity loss.