Stats

posted by .

Lemington’s is trying to determine how many Jean
Hudson dresses to order for the spring season.
Demand for the dresses is assumed to follow a normal
distribution with mean 400 and standard deviation
100. The contract between Jean Hudson and
Lemington’s works as follows. At the beginning of the
season, Lemington’s reserves x units of capacity.
Lemington’s must take delivery for at least 0.8x
dresses and can, if desired, take delivery on up to x
dresses. Each dress sells for $160 and Hudson charges
$50 per dress. If Lemington’s does not take delivery
on all x dresses, it owes Hudson a $5 penalty for each
unit of reserved capacity that is unused. For example,
if Lemington’s orders 450 dresses and demand is for
400 dresses, Lemington’s will receive 400 dresses and
owe Jean 400($50)  50($5). How many units of
capacity should Lemington’s reserve to maximize its
expected profit?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math (Statistic)

    Considered the sampling distribution of a sample mean obtained by random sampling from an infinite population. This population has a distribution that is highly skewed toward the larger values. a) How is the mean of the sampling distribution …
  2. stats

    SAT math scores approx. follow a normal distribution, with mean 500 and standard deviation 100. What % of students should have an SAT math score above 500?
  3. MATH

    Which of the following normal distributions has the smallest spread?
  4. stats

    the distribution of IQscores forms a normal distribution with a mean of 100 and a standard deviation of 15. what is the proportion of the population that has an IQscore greater than 130?
  5. statistics

    Scores on a certain nationwide college entrance examination follow a normal distribution with a mean of 400 and a standard deviation of 100. Find the probability that a student will score over 500.
  6. math

    A season of football scores falls in a normal distribution with a mean of 35 and standard deviation of 6. What is the probability that a score was between 29 and 41?
  7. stats

    glucose level in patients free of diabetes are assumed to follow a normal distribution with a mean of 120 and a standard deviation of 16. (20 pts) What proportion of patients has glucose levels exceeding 115?
  8. stats

    (a) The test had six multiple-choice items that were scored as correct or incorrect, so the total score was an integer between 0 and 6. Do you think that these data are Normally distributed?
  9. stats

    (a) The test had six multiple-choice items that were scored as correct or incorrect, so the total score was an integer between 0 and 6. Do you think that these data are Normally distributed?
  10. stats

    scores on the SAT critical reading test in 2013 follow a normal distribution with a mean score of 496 and a standard deviation of 115. what proportion of scores are higher thzn 530?

More Similar Questions