Question: PART C: (4 marks) On consecutive Sundays, John, the owner of a local newsstand, purchases a number of copies of The online gaming Journal, a

PART C: (4 marks) On consecutive Sundays, John,

PART C: (4 marks) On consecutive Sundays, John, the owner of a local newsstand, purchases a number of copies of The online gaming Journal, a popular weekly magazine, from the publisher. He pays 25 cents for each copy and sells each for 75 cents. Copies he has not sold during the week can be returned to his publisher for 10 cents each. The supplier is able to salvage the paper for printing future issues. Suppose that the demand of copies of The Online Gaming Journal during any week is a random variable that is approximately normally distributed with mean of 11.73 per week and standard deviation of 4.74 per week. (a) What is the cost of underestimating demand for each copy? (b) What is the overage cost per copy? (c) How many copies should John purchase each Sunday? (d) What is the stockout risk for this order size

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