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Use the newsvendor framework to determine the optimal number of homepage impressions to promise its advertisers for the next quarter. Assume that advertisers are willing

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Use the newsvendor framework to determine the optimal number of homepage impressions to promise its advertisers for the next quarter. Assume that advertisers are willing to pay $10 CPM under a reservation contract but will impose 10% under-delivery penalty. If an impression is not already contracted for, then Break will have to sell it on the Ad Exchange. Break can expect to receive about $3 CPM on the exchange. Break forecasts that its next quarter user visits to be normally distributed with a mean of 1 10M and a standard deviation of 9M

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