Question: QUESTION 10 6 points Save Answer A local bakery shop bakes fresh muffins every morning to be sold throughout the day. The average daily demand

QUESTION 10 6 points Save Answer A local bakery

QUESTION 10 6 points Save Answer A local bakery shop bakes fresh muffins every morning to be sold throughout the day. The average daily demand for muffins is estimated as 50 with standard deviation of 5, and the demand is assumed to be normally distributed. Producing each muffin costs bakery shop 1 dollar, and the shop sells each muffin at 5 dollars. Any unsold muffin by the end of a day are given away for free. The average daily demand for muffins is estimated as [d] with standard deviation of [s]. Using the newsvendor model, how much muffin needs to produced every morning to maximize the expected profit? Standard Normal Probabilities Table entry Table entry for z is the area under the standard normal curve to the left of z. .00 .01 .02 .03 .04 .05 .09 .5359 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 .5000 .5398 .5793 .6179 .6554 .6915 .7257 .7580 .7881 .8159 .8413 .8643 .8849 .9032 .9192 9332 9452 .9554 .9641 9713 9772 .5040 .5438 .5832 .6217 .6591 .6950 .7291 .7611 .7910 .8186 .8438 .8665 .8869 .9049 .9207 .9345 9463 .9564 .9649 .9719 9778 .5080 .5478 .5871 .6255 .6628 .6985 .7324 .7642 .7939 .8212 .8461 .8686 .8888 .9066 .9222 9357 9474 9573 .9656 .9726 .9783 .5120 .5517 .5910 .6293 .6664 .7019 .7357 .7673 .7967 .8238 .8485 .8708 .8907 .9082 .9236 .9370 .9484 .9582 9664 .9732 .9788 .5160 .5557 .5948 .6331 .6700 .7054 .7389 7704 .7995 8264 .8508 .8729 .8925 .9099 .9251 .9382 9495 9591 .9671 9738 .9793 .5199 .5596 5987 .6368 .6736 .7088 .7422 .7734 .8023 .8289 .8531 .8749 .8944 .9115 .9265 .9394 9509 .9599 .9678 .9744 -9798 .06 .07 .5239 5279 5636 .5675 .6026 .6064 .6406 .6443 .6772 .6808 7123 .7157 .7454 .7486 .7764 .7794 .8051 .8078 .8315 .8340 .8554 .8577 .8770 .8790 .8962 .8980 .9131 .9147 9279 .9292 .9406 9418 9515 .9525 9608 .9616 9686 .9693 9750 .9756 .9803 9808 .08 .5319 .5714 .6103 .6480 .6844 .7190 .7517 .7823 .8106 .8365 .8599 .8810 .8997 .9162 9306 9429 9535 .9625 .9699 .9761 9812 .5753 .6141 .6517 .6879 .7224 .7549 .7852 .8133 .8389 .8621 .8830 .9015 .9177 9319 .9441 9545 .9633 .9706 .9767 9817 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit

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