Question $2(33\mathrm{.}4$ points$)$

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Suppose a company uses the newsvendor model to manage its inventories and faces normally distributed demand with a coefficient of variation $=1.$ The company decides to order a quantity that exactly equals its mean demand forecast. Which of the following is true regarding this company$$s performance measures?

Question $2$ options:

The probability of serving all the demand is $50\%$

Expected lost sales is $50\%$ of mean demand

Expected sales is equal to mean demand

Expected left over inventory is $0$