Redesigned product should the manufacturer produce

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Consider a manufacturer of smartphones. The manufacturer produces two different versions, one destined for North America and the other for Asia. Based on an extensive market research, the manufacturer estimates that demand for versions 1 and 2, X1 and X2, follow Normal distributions with (µ1 = 150, σ1 = 30) and (µ2 = 200, σ2 = 50), respectively. Suppose that the manufacturer is contemplating a redesign of the product so that the same version can be sold in both the North American and European Markets. Assume that the demands for the two markets are independent. How many units of the redesigned product should the manufacturer produce?

Reference no: EM131729328

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