Maximizes the total expected profit

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Reference no: EM1314006

The owner of a ski apparel store in Winter Park, CO must make a decision in July regarding the number of ski jackets to order for the following ski season. Each ski jacket costs $54 and can be sold during the ski season for $145. Any unsold jackets at the end of the season are sold for $45. The demand for jackets is expected to follow a Poisson distribution with an average rate of 80. The store owner can order jackets in lot sizes of 10 units.

How likely is it that the store owner will make at least $7,000 if she implements your suggestion?

Reference no: EM1314006

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