Question: question 18 (COMPLETE) A manager intends to order a new machine and must now decide on the number of spare parts to order along with

question 18 (COMPLETE)

A manager intends to order a new machine and must now decide on the number of spare parts to order along with the machine. The parts cost $438 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:8 spare parts with frequency 0.12;9 spare parts with frequency 0.07;10 spare parts with frequency 0.23;11 spare parts with frequency 0.08; and 12 spare parts with frequency 0.5. For what range of shortage costs would stocking 10 spare parts constitute an optimal decision ?

Between 102.7and 317.2

Between 51.37and 158.6

Between 123.3and 380.6

Between 154.1and 475.8

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