Question: 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

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 $438 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts: 6 spare parts with frequency 0.21;7 spare parts with frequency 0.1;8 spare parts with frequency 0.05;9 spare parts with frequency 0.11 ; and 10 spare parts with frequency 0.53. For what range of shortage costs would stocking 8 spare parts constitute an optimal decision?
a. Between 196.8and 246.4
b. Between 295.2and 369.6
c. Between 98.39 and 123.2
d. Between 236.1 and 295.7
 A manager intends to order a new machine and must now

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