If your factories produce too much, then you will have to pay to store the extra inventory.
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If your factories produce too much, then you will have to pay to store the extra inventory. If you produce too little, then customers will be turned away and profits will be lost. Therefore, you would like to produce exactly the right amount to avoid these costs to your company. Unfortunately, however, you do not know the correct production level. Which is the main statistical activity required to solve this problem?
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