A newspaper salesman buys New York Times newspapers every morning for $0.5 each, and sells them in Manhattan for $2.00 each. Any unsold newspapers are sold to a recycling company for $0.15. In order to establish his sales pattern, he collected the following seven days of data, which he believes is representative of his long-term sales distribution, with no seasonal pattern (total 770):

Day	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Sales	120	100	105	110	95	115	125

Question 15 (1 point)

Refer to Exhibit 3. What is the cost of overestimating the demand per unit?

Question 15 options:

	$2.00
	$2.15
	$0.35
	$1.50
	$0.50

Question 16 (1 point)

Refer to Exhibit 3. What is the cost of underestimating the demand per unit?

Question 16 options:

	$2.15
	$1.50
	$2
	$0.35
	$10

Question 17 (1 point)

Refer to Exhibit 3. What is the optimal service level for this newspaper?

Question 17 options:

	48%
	81%
	99%
	97%
	32%

Question 18 (1 point)

Refer to Exhibit 3. How many newspapers should the newsboy buy each morning?

Question 18 options:

	119
	110
	117
	120
	100

Question 19 (1 point)

Refer to Exhibit 3. If he was unable to salvage the newspapers for $0.15 (salvage is zero); how many newspapers should he buy now?

Question 19 options:

	120
	110
	100
	117
	119