Consider the Crestview Printing Company mentioned in Problem 9. Suppose that Crestview wishes to produce enough cards to satisfy all Christmas demand with probability 90 percent. How many cards should they print? Suppose the probability is 97 percent. What would you recommend in this case? (Your answer will depend upon the assumption you make concerning the shape of the cumulative distribution function.)

 

Problem 9

The Crestview Printing Company prints a particularly popular Christmas card once a year and distributes the cards to stationery and gift shops throughout the United States. It costs Crestview 50 cents to print each card, and the company receives 65 cents for each card sold. Because the cards have the current year printed on them, those cards that are not sold are generally discarded. Based on past experience and forecasts of current buying patterns, the probability distribution of the number of cards to be sold nationwide for the next Christmas season is estimated to be

Determine the number of cards that Crestview should print this year.

 

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Status NEW Posted 15 Jun 2017 03:06 PM My Price 5.00

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