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Please show all work, thank you Consider a product satisfying assumptions of the newsvendor model. Demand-Normal[-1000, -2001. Purchase cost: $100 / unit. For every unit
Please show all work, thank you Consider a product satisfying assumptions of the newsvendor model. Demand-Normal[-1000, -2001. Purchase cost: $100 / unit. For every unit sold, there is a profit of $20 per unit. (Revenue cost+profit 100 20 $120). Unsold units are disposed of at a loss of value: $30 per Unit (therefore V-$70). a.) What is the mean demand? b.) What is the newsvendor critical ratio? c.) What is the optimal order quantity Q*? (Round up to the nearest integer if you get a non- integer.) d.) If we order Q as obtained in (c), what is the expected lost sales? e.) If we order Q* as obtained in (c), what is the expected profit
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