Question
A weekly sports magazine publishes a special edition for the World Series. The sales forecast is for the number of copies to be normally distributed
A weekly sports magazine publishes a special edition for the World Series. The sales forecast is for the number of copies to be normally distributed with mean 500,000 copies and standard deviation 25,000 copies. It costs $.35 to print a copy, and the newsstand price is $1.95. Unsold copies can be sold to a recycling center for $.15 each. a.What is the per unit cost of overestimation? b.What is the per unit cost of underestimation? c. How many copies should the sports magazine print to minimize inventory costs? d.What's the probability they will have copies left over?
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