b) The marketing department at Skywalker Inc. has just realized that its competitor, Vader Enterprises, has started producing a rival product, RedSaber. Because both products compete directly for the same consumer segment, the combined demand (i.e., the sum) of BlueSaber and RedSaber remains normally distributed with mean 100 and standard deviation 20. The demand for BlueSaber is now a random fraction of this total demand; with the remainder of total demand going to RedSaber. This random fraction is either 0.3 or 0.9 with equal probability, and this random fraction is statistically independent of the total demand for both BlueSaber and RedSaber. (i.) What is the expected demand for BlueSaber? (3 marks) (ii.) What is the probability that the demand for BlueSaber is less than 40? (3 marks) (i) 60 units of BlueSaber 3 marks 2 DAO1704 & DAO1704X &DSC1007 & DSC1007X (ii) = 0.5*NORM.DIST(40, 30, 6, 1) 3 marks + 0.5*NORM.DIST(40, 90, 18, 1)