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Klub produces programs and books for single-weekend events such as reunions and festivals. Production planning must happen several weeks before the event with no opportunity to re-print, so we have to work with demand forecasts. For an upcoming event, demand is predicted to be normally distributed with parameters:
Demand is Normal
Mu µ 2200
Sigma σ 250
The selling price of a book is $12. The manufacturing cost per unit is $3.
Klub keeps all of the profits from the sale. How many books should Klub produce? What is the corresponding expected profit?
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