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A Demand Probability 20 0.30 25 0.15 30 0.15 35 0.20 40 0.20In August of the current year, a car dealer is trying to determine
A Demand Probability 20 0.30 25 0.15 30 0.15 35 0.20 40 0.20In August of the current year, a car dealer is trying to determine how many cars of the next model year to order. Each car ordered in August costs $20,000. The demand for the dealer's next year models has the probability distribution shown in the file P15_12.xlsx. Each car sells for $25,000. If demand for next year's cars exceeds the number of cars ordered in August, the dealer must reorder at a cost of $22,000 per car. Excess cars can be disposed of at $17,000 per car. Use simulation to determine how many cars to order in August, if the goal is to maximize mean profit. Narrow your search from 20 to 40 at increments of 5 cars. 25 For your optimal order quantity, find a 95% confidence interval for the expected profit. Lower Limit $ Upper Limit $
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