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Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $ 1 1 each from its Asian supplier, TeddySports.

Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $11 each from its Asian supplier, TeddySports. Unfortunately, at the time of the order placement, demand is still uncertain: Teddy Bower forecasts that its demand is normally distributed with a mean of 2,100 and a standard deviation of 1,200. Teddy Bower sells these parkas at $22 each. Unsold parkas have little salvage value; Teddy Bower simply gives them away to a charity (and also doesnt collect a tax benefit for the donation). 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.
What is the probability this parka turns out to be a dog, defined as a product that sells less than half of the forecast? Use Excel.
Note: Round your answer to 4 decimal places.
How many parkas should Teddy Bower buy from TeddySports to maximize expected profit? Use Table 13.4.
If Teddy Bower orders 3,500 parkas, what is the in-stock probability? Use Excel.
Note: Round your answer to 4 decimal places.
If Teddy Bower orders 3,500 parkas, what is expected leftover inventory? Use Excel.
Note: Round your answer to 2 decimal places.
If Teddy Bower orders 3,500 parkas, what is expected sales? Use Excel.
Note: Round your answer to 2 decimal places.
If Teddy Bower orders 3,500 parkas, what is expected profit? Use Excel.
Note: Round your answer to 2 decimal places.
How many parkas should Teddy Bower order to ensure a 98.5% in-stock probability? how many parkas should Teddy Bowers order? Use Table 13.4.

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