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March 28, 2017

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You are the buyer for your university bookstore. One of the textbooks has a cost to you of $104 and you sell it to students for $208. In this case, however, you cannot salvage any value from copies that do not sell because a new edition is published every semester. Demand for this text averages 100 copies each semester, with a standard deviation of 10 copies.

How many should you order each semester?

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