Question: (30 points) Consider a new apparel item which retails for $90, costs $50 to procure, and can be sold at a clearance price of $40

(30 points) Consider a new apparel item which

(30 points) Consider a new apparel item which retails for $90, costs $50 to procure, and can be sold at a clearance price of $40 after it is no longer fashionable. (a) Find the optimal stocking quantity and the resulting expected profits if demand D~N(1000, 2502). (b) Now find the optimal stocking quantity and the resulting expected profits if we instead have demand D ~ Uniform(500, 1500)

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