Question: Newsvendor model when demand is normal + = 9 0 is called the critical fractile = 1 5 = 5 Suppose demand is normally distributed

Newsvendor model when demand is normal
+
=
9
0
is called the critical fractile
=
1
5
=
5
Suppose demand is normally distributed with mean
=
3
0
and standard deviation
=
1
0
k Calculate the critical fractile:
1
-
=
+
=
9
0
9
0
+
1
0
=
0
.
9
Find the corresponding
-
value
=
1
.
2
8
Optimal Quantity
*
*
=
+
=
3
0
+
1
.
2
8
\times
1
0
=
4
2
.
8
ie just for Normal distribution. How do i find the z
-
value
1
.
2
8
given this information without the confidence level. Whats the formula or technique please explain thanks

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