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 $425 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:3 spare parts with frequency 0.19;4 spare parts with frequency 0.12;5 spare parts with frequency 0.17;6 spare parts with frequency 0.22; and 7 spare parts with frequency 0.3. For what range of shortage costs would stocking 5 spare parts constitute an optimal decision ?

a.

Between 95.47and 196.2

b.

Between 229.1and 470.8

c.

Between 190.9and 392.3

d.

Between 286.4and 588.5