question archive The amounts suggested by managers to buy the new toys are 25,000,m 28,000, 34,000 or 38,000 units
The amounts suggested by managers to buy the new toys are 25,000,m 28,000, 34,000 or 38,000 units
Subject:StatisticsPrice: Bought3
The amounts suggested by managers to buy the new toys are 25,000,m 28,000, 34,000 or 38,000 units. The wide range of these quantities indicates a considerable discrepancy in market potential. The management team asks you for an analysis of the probabilities of finishing inventory according to various quantities to buy, as well as an estimate of the earning potential and your help in making a recommendation of the amount to be purchased. The company plans to sell this new toy for $65 based on a cost of $10 per unit. If there is surplus inventory after the holiday season, you will sell the remaining units for $35 each. After reviewing previous sales of similar products, price and demand planning experts forecast an expected demand of 20,000 units and 0.95 of the probability of demand being between 12,000 and 40,000. .
Use sales forecasts to describe a normal probability distribution that can be used to approximate demand distribution. Draw the distribution and give your mean and standard deviation. .
Calculate the probability of finishing inventory based on the quantities to be purchased suggested by management team members.
