Question
Consider the following description and Excel screenshot for FIVE questions: A t-shirt company is planning a production run for an event where the attendance (and
Consider the following description and Excel screenshot for FIVE questions:
A t-shirt company is planning a production run for an event where the attendance (and thus demand for t-shirts) is uncertain. The event planners have indicated that they think the attendance will be 500, 750 or 1000, with probabilities of 30%, 50% and 20% respectively. The company must pre-order the t-shirts (cost = $5 per shirt) and it can sell shirts for $12 apiece at the event. Any shirts that cannot be sold at the event can be sold for $2 apiece to a used clothing vendor. Below is the Excel setup for the problem:
Q: In order to develop the general model, what should be entered in B15 which represents the # of T-shirts sold at the event?
Group of answer choices
400
=MIN(B9,B12)
=ABS(B9-B12)
0
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