Explain how many units of the sale item should store stock

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Reference no: EM13127213

A department store will place a sale item in a special display for a one-day sale. Previous experience suggests that 27 percent of all customers who pass such a special display will purchase the item. If 1,320 customers will pass the display on the day of the sale, and if a one-item-per-customer limit is placed on the sale item, how many units of the sale item should the store stock in order to have at most a 1 percent chance of running short of the item on the day of the sale? Assume here that customers make independent purchase decisions.

Reference no: EM13127213

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