1). An organization hosting a 5k race is looking to sell t-shirts at the event. Demand for t-shirts is believed to be normally distributed with a mean of 100 and standard deviation of 15. With a marginal loss of $4 and marginal profit of $5, how many t-shirts should the organization stock for the 5k race?

2). Bret’s bakery must decide how many loaves of fresh bread to produce in a single day. Daily demand for fresh bread is normally distributed with a mean of 70 loaves and standard deviation of 18. If the marginal loss is $2 and the marginal profit is $1, how much bread should Bret’s bakery produce in a single day?

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The Marginal Profit is 5 and Marginal loss is 4 Let demand be variable x with mean 100 an... View the full answer