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Please answer question number 2 and please explain answer Q2 (5 points) During the Final Four, demand for basketball jerseys is uniformly distributed with minimum
Please answer question number 2 and please explain answer
Q2 (5 points) During the Final Four, demand for basketball jerseys is uniformly distributed with minimum demand a=200 and maximum demand b=700. Each jersey costs $30. The selling price is $50 per jersey. How many jerseys should be ordered to maximize expected profits? Q3 (6 points) As owner of Catch-of-the-Day Fish Shop, you can purchase fresh fish at \$18 per crate each morning from the Walton Fish Market. During the day, you sell crates of fish to local restaurants for $120 each. Coupled with the perishable nature of your product, your integrity as a quality supplier requires you to dispose of each unsold crate at the end of the day. Your cost of disposal is \$2 per crate. You have a problem, however, because you do not know how many crates your customers will order each day. To address this problem, you have collected several days' worth of demand data shown in the table below. Determine the optimal number of crates you should purchase each morning according to the newsvendor modelStep by Step Solution
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