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For a given product, the average demand per selling period is 2 2 0 units with a std . deviation of 1 1 0 units.

For a given product, the average demand per selling period is 220 units with a std. deviation of 110 units. The optimal newsvendor quantity is 440. Which of the following statements will be true?
The cost of overstocking (per unit) is greater than the cost of understocking (per unit).
The optimal newsvendor quantity would be lower if the std. deviation of demand was smaller.
Demand for the product is systematically underestimated.
If more than 440 units were ordered, total costs could be reduced.
The estimates for the costs of over- and understocking are inaccurate.

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