QUESTION $13$

Chapter $12,$ Problem $37$ distribution with a mean of $40$ quarts per day and a standard deviation of $6$ quarts per day. Excess costs run $35$ cents per quart. The grocer orders $49$ quarts per day.

What is the $Z$ value used in this problem?

$1$

$1\mathrm{.}25$

$1\mathrm{.}5$

$2$

QUESTION $14$

Chapter $12,$ Problem $37$ distribution with a mean of $40$ quarts per day and a standard deviation of $6$ quarts per day. Excess costs run $35$ cents per quart. The grocer orders $49$ quarts per day.

What is the optimal service level for this problem? $($Please keep $4$ digits after the decimal point$)$

QUESTION $15$

Chapter $12,$ Problem $37$ distribution with a mean of $40$ quarts per day and a standard deviation of $6$ quarts per day. Excess costs run $35$ cents per quart. The grocer orders $49$ quarts per day.

What is the implied shortage cost per quart?