can you please answer only Q4 & Q5

Case 3: Specialty Toys Specialty Toys, Inc., sells a variety of new and innovative children's toys and believes that the preholiday season is the best time to introduce a new toy. Many families use this time to look for new ideas for December holiday gifts. When Specialty has a new toy with good market potential, choose an October market entry date In order to get toys in its stores by October, Specialty places one time orders with its mancturers in June y of each year Demand for children's toys can be w a t ches of hortage in the marketplace often increases the demand to very high levels and large profits can be read on the other hand, new toys can also flop, leaving Specialty stuck with high levels of inventory that must be soldat reduced prices. The most important question the company face dechow s of a new toy should be purchased to meet expected sales demand too fewe r s will be lost too many are purchased profits will be reduced because of low price ra in dearance For the coming season, Specialty plans to introduce a new product cated Weather Teddy. This waration of a talking teddy bear is made by a company in Taiwan When a children Teohand, the bear begin to talk with the aid of a built in barometer, Teddy says one of five responses that predict the weather conditions. The responses range from looks to be a very nice day! Have fun may rain today Don't forget your umbrella." Tests with the product show that even though it is not a perfect weather predictor, its predictions are surprisingly good. Several of Specialty' s e d Teddy gave predictions of the weather that were as good as the local television weather forecasters Specialty faces the decision of how many Weather Teddy units to order for the coming holiday season Members of the management team recommended order quantities of 15.000, 1000, 24000, and 28 000 Considerable disagreement concerning the market potentialis evidenced by the different order quantities suggested. The product management team has asked you for an analysis of the stock-out probabilities for various order quantities, an estimate of the profit potential, and help in making an order quantity recommendation Specialty expects to sell Weather Teddy for $24, and the cost is $16 per unit. If inventory remains after the holiday season, Specialty will sell all surplus inventory for $5 per unit. After reviewing the Sales history of similar products, Specialty's senior sales forecaster predicted an expected demand of 20,000 units with a 0.95 probability that demand would be between 10,000 units and 30,000 units Managerial Report Prepare a managerial report that addresses the following issues and recommends an order quantity for the Weather Teddy product: 1. Use the sales forecaster's prediction to describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and how it mean and standard deviation 2. Compute the probability of a stock-out for the order quantities sucted by members of the management team 3. Compute the projected profit for the order quantities sugested by the management team under the scenarios Worst case sales 10.000 unit most cases 20.000 units and best cases 30.000 units 4. One of Specialty's managers felt that the profit potential was so great that the order quantity should have a chance of meeting demand and only a so chance of any stock-outs. What it would be ordered under this policy, and what is the projected profit under the three scenarios in part 3? 5. Provide your own recommendation for an order quantity and not the associate profit projections Provide a rationale for your recommendation Case 3: Specialty Toys Specialty Toys, Inc., sells a variety of new and innovative children's toys and believes that the preholiday season is the best time to introduce a new toy. Many families use this time to look for new ideas for December holiday gifts. When Specialty has a new toy with good market potential, choose an October market entry date In order to get toys in its stores by October, Specialty places one time orders with its mancturers in June y of each year Demand for children's toys can be w a t ches of hortage in the marketplace often increases the demand to very high levels and large profits can be read on the other hand, new toys can also flop, leaving Specialty stuck with high levels of inventory that must be soldat reduced prices. The most important question the company face dechow s of a new toy should be purchased to meet expected sales demand too fewe r s will be lost too many are purchased profits will be reduced because of low price ra in dearance For the coming season, Specialty plans to introduce a new product cated Weather Teddy. This waration of a talking teddy bear is made by a company in Taiwan When a children Teohand, the bear begin to talk with the aid of a built in barometer, Teddy says one of five responses that predict the weather conditions. The responses range from looks to be a very nice day! Have fun may rain today Don't forget your umbrella." Tests with the product show that even though it is not a perfect weather predictor, its predictions are surprisingly good. Several of Specialty' s e d Teddy gave predictions of the weather that were as good as the local television weather forecasters Specialty faces the decision of how many Weather Teddy units to order for the coming holiday season Members of the management team recommended order quantities of 15.000, 1000, 24000, and 28 000 Considerable disagreement concerning the market potentialis evidenced by the different order quantities suggested. The product management team has asked you for an analysis of the stock-out probabilities for various order quantities, an estimate of the profit potential, and help in making an order quantity recommendation Specialty expects to sell Weather Teddy for $24, and the cost is $16 per unit. If inventory remains after the holiday season, Specialty will sell all surplus inventory for $5 per unit. After reviewing the Sales history of similar products, Specialty's senior sales forecaster predicted an expected demand of 20,000 units with a 0.95 probability that demand would be between 10,000 units and 30,000 units Managerial Report Prepare a managerial report that addresses the following issues and recommends an order quantity for the Weather Teddy product: 1. Use the sales forecaster's prediction to describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and how it mean and standard deviation 2. Compute the probability of a stock-out for the order quantities sucted by members of the management team 3. Compute the projected profit for the order quantities sugested by the management team under the scenarios Worst case sales 10.000 unit most cases 20.000 units and best cases 30.000 units 4. One of Specialty's managers felt that the profit potential was so great that the order quantity should have a chance of meeting demand and only a so chance of any stock-outs. What it would be ordered under this policy, and what is the projected profit under the three scenarios in part 3? 5. Provide your own recommendation for an order quantity and not the associate profit projections Provide a rationale for your recommendation