A manager intends to order a new machine and must now decide on the number of spare parts to order along with the machine. The parts cost $454 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:

9 spare parts with frequency 0.21;10 spare parts with frequency 0.09;

11 spare parts with frequency 0.11;12 spare parts with frequency 0.23;

13 spare parts with frequency 0.36.

For what range of shortage costs would stocking 11 spare parts constitute an optimal decision ?

a.

Between 291.9and 473.2

b.

Between 97.29and 157.7

c.

Between 233.5and 378.6

d.

Between 194.6and 315.5