Problem 2)

Lacoste t-shirts come with an average price of $ 120 a piece, at their factory outlet with a std. deviation of $ 17. But at the Seasonal Sale (Discount) outlets of these t-shirts, it was also drawing good crowds where the average price, after discount, was $ 75 and std deviation of $ 16. (Assume the distributions are both Normal).

Three specific segments of customers can be expected to form, as a result. One below the lowest price tag of the factory outlet (segment-I), one above the uppermost price level of the Seasonal Sale (segment-II) and the third (segment-III) in between.

If the market size of this brand Lacoste was decided at 22,000 pieces at the factory outlets and another 28,000 pieces for Seasonal Sale, how many pieces of t-shirts (out of this total of 50,000 pieces) can actually be ascertained for each of the above three market segments? Hint: Some pieces will be picked by consumers only at factory outlets. Some by customers only at Season sale. The remaining can be picked up by customers in both markets. Draw appropriate diagrams and clearly illustrate decision making zones.

a) Draw appropriate diagrams, write Excel formulae and illustrate decision areas relevant values.