Question
The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $75,
The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan.
Each unit will cost Gilbert $75, and it will be sold for $130. Gilbert does not want to carry surplus air conditioners over until the following year. Thus, all surplus air conditioners will be sold to a wholesaler for $40 per unit. Assume that the air conditioner demand follows a normal
probability distribution with h = 21 and o = 9.
Note: Use Appendix B to identify the areas for the standard normal distribution. Round "cumulative standard normal probability" to two decimal places.
- What is the recommended order quantity? Round your answer to the nearest whole number. Q=
- What is the probability that Gilbert will sell all units it orders? Round your answer to two decimal places. P(Sell All).=
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