The highest expected profit for the news vendor model

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Reference no: EM132225346

Which of the following Normal demand distributions would result in the highest expected profit for the news vendor model (keeping cost/revenue parameters the same)? Choose the best answer.

a. Mean 20, standard deviation 0.

b. Mean 20, standard deviation 10.

c. Mean 20, standard deviation 20.

d. Mean 10, standard deviation 0.

e. Mean 10, standard deviation 10.

f. Mean 10, standard deviation 20.

g. It is not possible to determine which of the above has the highest expected profit because it would depend on the particular cost and revenue parameters.

Reference no: EM132225346

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