26. The function provides the probability that an outcome is a certain level or A density, lower, B. distribution, lower, C. density, higher, D. distribution, higher Problems 27 to 30 refer to the following: Monsanto sells genetically modified seed to farmers. It needs to decide how much seed to put into a warehouse to serve demand for the next growing season. It will make one quantity decision. It costs Monsanto $6 to make each kilogram (kg) of seed. It sells each kg for $43. If it has more seed than demanded by the lo- cal farmers, the remaining seed is sent overseas. Unfortunately, it only earns $4 per kg from the overseas market (but this is better than destroying the seed because it cannot be stored until next year). If demand exceeds its quantity, then the sales are lost--the farmers go to another supplier. As a forecast for demand, it will use a normal distribution with a mean of 300,000 and a standard deviation of 100,000. Use Table 13.4 27. How many kilograms should Monsanto place in the warehouse before the grow- ing season? Use Table 13.4 and round-up rule. A. 170,000, B. 250,000, C.360,000, D. 470,000 28. If Monsanto put 450000 kgs in the warehouse, what is its expected revenue (in- clude both domestic revenue and overseas revenue)? Use Table 13.4 and round-up rule. A. 13,385,730, B. 12,057,640, C. 14,055,550, D. 11,200,350 29. How many kilograms should Monsanto place in the warehouse to minimize in- ventory while ensuring that the stockout probability is no greater than 10%? Use Ta. ble 13.4 and round-up rule. A. 430,000, B. 330.000, C. 470,000, D. 273,000 30. What is maximum profit for this seed? A. 16,600,000, B. $13,300,000, C. S11,100,000, D. $12,200,000 31. Which of the following is an input to a time series-based forecast? A. Old realizations of demand, B. Old realizations of other variables C. Subjective opinions about the future, D. All of the choices