Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self-Destruction, an expos on a famous politician's lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book's retail price is $23, and the wholesale price is $13. The publisher will buy back the retailer's leftover copies at a full refund, but McClure Books incurs $3 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a normal distribution with a mean of 150 and a standard deviation of 80. Use Table 13.4.

Note: If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method.

1. Dan will consider this book to be a blockbuster for him if it sells more than 365 units. Using Table 13.4 and the round-up rule, what is the probability that Power and Self-Destruction will be a blockbuster?

   Note: Round your answer to 4 decimal places.

2. Dan considers a book a "dog" if it sells less than 50 percent of his mean forecast. What is the probability this expose is a "dog"? Use Excel.

   Note: Round your answer to 4 decimal places.

3. Use Table 13.4 and the round-up rule to determine the probability that demand for this book will be within 20 percent of the mean forecast.

   Note: Round your answer to 4 decimal places.

4. Using Table 13.4 and the round-up rule, calculate the order quantity that maximizes Dans expected profit.

   Note: Do not round intermediate calculations. Round to the nearest whole number.

5. If Dan orders the quantity needed to achieve a 93% in-stock probability, then what is the probability that some customer wont be able to purchase a copy of the book?

   Note: Enter your answer as a percentage rounded to the nearest whole number.

6. Suppose Dan orders 300 copies of the book. Using Table 13.4 and the round-up method, calculate Dan's expected leftover inventory to a whole unit.

   Note: Do not round intermediate calculations. Round to the nearest whole number.

7. Suppose Dan orders 300 copies ofthe book. What is Dans expected sales?

   Note: Do not round intermediate calculations. Round to the nearest whole number.

8. Suppose Dan orders 300 copies of the book. What is Dans expected profit?

   Note: Use your rounded Part f and g answers. Round to the nearest whole number.

9. Use Table 13.4 and the round-up function to determine how many books Dan should order if he wants to achieve a 93% in-stock probability.

   Note: Do not round intermediate calculations. Round to the nearest whole number.