Question: Problem 5 (10 points) Sports Authority is preparing for a huge annual AAU basketball tournament to be held at the Greensboro Coliseum. The local store

Problem 5 (10 points) Sports Authority is
Problem 5 (10 points) Sports Authority is preparing for a huge annual AAU basketball tournament to be held at the Greensboro Coliseum. The local store will be at the coliseum during the tournament selling NBA basketball jerseys at 30% off normal price because they are in such high demand during basketball season. The jerseys are originally sold at $60. Sports Authority will order all jerseys to be sold at the tournament from Adidas beforehand. They buy the jerseys from Adidas at $25 each. Each year, about 5,000 people attend the tournament, and about 40% of them are attracted to the sale and buy a jersey. After many years of holding this tournament, Sports Authority executives have concluded that jersey sales follow a normal distribution with a standard deviation of 200. Unsold jerseys will be sold to the coliseum's sports store for $20 each so that they won't take up inventory space at the store's location. What is the optimal order size that Sports Authority should place with Adidas

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