Question
University of Florida football programs are printed 1 week prior to each home game. Attendance averages 75,000 screaming and loyal Gators fans, of whom
University of Florida football programs are printed 1 week prior to each home game. Attendance averages 75,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $4 each. Unsold programs are sent to a recycling center that pays only 20 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. a) What is the cost of underestimating demand for each program? $(round your response to two decimal places).
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