Suggested order quantities are: 15,000, 18,000, 24,000, 28,000 units. Weather Teddy sells for $24 based on the cost of $16 per unit. The specialty will sell all surplus inventory for $5 per unit. The expected demand of 20,000 units with a 0.95 probability would be between 10,000 units and 30,000 units. For 95% confidence interval, a=1-0.95=0. Hence 95% confidence Interval is (10,000 95%onfidence Interval is given by; Eza/20=µ±z0.025o From the z table, we know that z0.025=1.9 From the sales forecaster's prediction; µ+1.960=30,000 H-1.960=10,000 Solving the above equations, we get Mean(µ)=20,000 Standard deviation(o)=5102.04082
Suggested order quantities are: 15,000, 18,000, 24,000, 28,000 units. Weather Teddy sells for $24 based on the cost of $16 per unit. The specialty will sell all surplus inventory for $5 per unit. The expected demand of 20,000 units with a 0.95 probability would be between 10,000 units and 30,000 units. For 95% confidence interval, a=1-0.95=0. Hence 95% confidence Interval is (10,000 95%onfidence Interval is given by; Eza/20=µ±z0.025o From the z table, we know that z0.025=1.9 From the sales forecaster's prediction; µ+1.960=30,000 H-1.960=10,000 Solving the above equations, we get Mean(µ)=20,000 Standard deviation(o)=5102.04082
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 42PFA
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Step 2
Suggested order quantities are: 15,000,
18,000, 24,000, 28,000 units. Weather
Teddy sells for $24 based on the cost of
$16
$16 per unit. The specialty will sell all
surplus inventory for $5 per unit. The
expected demand of 20,000 units with a
0.95 probability would be between
10,000 units and 30,000 units.
For 95% confidence interval, x=1-0.95=0.
Hence 95% confidence Interval is (10,000.
95%onfidence Interval is given by;
Ζα/2σ-μ#20.025 σ
From the z table, we know that z0.025=1.9
From the sales forecaster's prediction;
u+1.960=30,000
H-1.960=10,000
Solving the above equations, we get
Mean(u)=20,000
Standard deviation(o)=5102.04082
Step 3
Part 2)
D
1
1:1:
1.
15
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