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Based on what you know about the distribution of demand, the probability of stock-outs, and the expected profit, how many units of Weather Teddy do
Based on what you know about the distribution of demand, the probability of stock-outs, and the expected profit, how many units of Weather Teddy do you recommend that Specialty Toys purchase? Support your conclusion with information from the Lab. A conclusion is "correct" as long as your reasoning behind the conclusion is sound. Reasoning like "Just buy 15000 units because better a stock out than a loss" is not sound reasoning with information from the lab.
Options are 15000, 18000, and 24000.
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