Question: (This problem description is for Questions 6 - 11) Sam's Club purchases a particular model of air conditioner trom Kool King and sells it to

(This problem description is for Questions 6 -

(This problem description is for Questions 6 - 11) Sam's Club purchases a particular model of air conditioner trom Kool King and sells it to the market. Most sales are made in June and July. Sam's makes a one-time purchase of air conditioners in May at a cost of $200 each and sells each air conditioner for $400. Any air conditioners unsold at the end of July are marked down to $175 and sold in a special sale. All marked-down air conditioners are sold. The total (June + July) customer demand distribution for air conditioners is given below (predicted based on data analysis): Demand X 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 Probabi lity 0.04 0.08 0.12 0.16 0.2 0.16 0.10 0.10 0.04 Question: Suppose that one month of summer has passed, and it is now July 1st. Sam's has 8,000 air conditioners in inventory. Management now believes that customer demand during July will be: Demand 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 Probability 0.04 0.08 0.12 0.16 0.2 0.16 0.12 0.08 0.04 Due to an unusually hot summer in Europe, a European distributor has offered to purchase any number of air conditioners that Sam's is willing to provide on July 1) for $320/unit. How many air conditioners should Sam's sell to the European distributor? O 0 0 2900 O 3100 3400 O 3200 O 2500 O 3000

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