You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the days paper for $0.30 a copy. You sell a copy of the San Pedro Times for $1.50. Daily demand is distributed normally with mean = 295 and standard deviation = 59. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.

How many copies of the San Pedro Times should you buy each morning?

Note: Use Excel's NORM.S.INV() function to find the z value. Round your z value and service level to 2 decimal places and final answer to the nearest whole number.

Based on a, what is the probability that you will run out of stock?