Kolette will be selling a new, small purse for $399 in the upcoming spring season and needs to determine how many to mak
Posted: Sun Jul 03, 2022 4:26 pm
Kolette will be selling a new, small purse for $399 in theupcoming spring season and needs to determine how many to make.They will not produce more once the season starts. The firm makesthe purse for $200. If sold on mark-down, the purse will be soldfor $175. Based on previous new product offers, demand for thepurse during the season is expected to be Normally distributed witha mean of 500 and a coefficient of variation is 0.4.
d) [2 pts] Suppose the demand is Uniformly Distributed between 0and 1000. That is, any posible number between 0 and 1000 is equallylikely. How many units of the purse should Kolette produce forsale?
e) [4 pts] Suppose that on markdown the purse sells for $225 anddemand is Uniformly Distributed between 0 and 1000. How many unitsshould Kolette produce for sale and what would the expected profitbe?
d) [2 pts] Suppose the demand is Uniformly Distributed between 0and 1000. That is, any posible number between 0 and 1000 is equallylikely. How many units of the purse should Kolette produce forsale?
e) [4 pts] Suppose that on markdown the purse sells for $225 anddemand is Uniformly Distributed between 0 and 1000. How many unitsshould Kolette produce for sale and what would the expected profitbe?