Question: ( Q 1 1 - Q 1 5 ) Nordic Inc. has designed four ski boot styles it plans to sell in the 2 0

(Q11-Q15) Nordic Inc. has designed four ski boot styles it plans to sell in the 2015 winter season: Terrain, Blizzard, IceFix, and Freezdom. Nordic can produce some ski boot styles well in advance of the selling season and produce the remaining styles after the 2015 Ski Elite Athletes Trade (SEAT) show that occurs just before the selling season. At the time it makes its initial production decision, Nordics forecast for each boots demand is normally distributed with means and standard deviations listed in the table below. The table also lists Cu, Co, the optimal Newsvendor quantity Q and the expected Newsvendor profits from producing Q.
Boot
Price
Mean
Std Dev
Cu
Co
Q
Expected Newsvendor Profit
Terrain
200
100
30
48
16
120
$4,188
Blizzard
180
110
30
45
15
130
$4,376
IceFix
120
205
70
29.4
9.8
252
$5,152
Freezdom
150
195
85
23.7
7.9
252
$3,765
After the trade show, and before it makes its final production decision, Nordic will know the exact demand for each boot.
Q14) Suppose Nordic chooses to produce optimal quantities of the IceFix style before the SEAT show. What is the probability that Nordic will have less than 25 units of IceFix inventory left at the end of the season?
(Note: The probability can be expressed as a fraction or a percentage. For example, if your answer is 0.70(=70%), you may enter the answer as either 0.70 or 70.)

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