A newsstand manager must decide how many daily papers to stock. Past experience has shown that demand
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A newsstand manager must decide how many daily papers to stock. Past experience has shown that demand can be approximated by a normal distribution with a mean of 400 papers and a standard deviation of 80 papers. The manager pays 20 cents for each paper, sells it for 40 cents, and any papers not sold are picked up by the distributor, with the manager receiving 5 cents for each of them. If the manager wants to maximize his expected profit, how many newspapers should be stocked?
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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The managers marginal profit MP is 20 cents 40 cents selling ...View the full answer
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