What order quantity maximizes borders

Assignment Help Basic Statistics
Reference no: EM131743117

A publisher sells books to Borders at $10 each. Borders prices the book to its customers at $17 and expects demand over the next two months to be normally distributed, with a mean of 50,000 and a standard deviation of 30,000. Borders places a single order with the publisher for delivery at the beginning of the two-month period. Currently, Borders discounts any unsold books at the end of two months down to $5, and any books that did not sell at full price sell at this price.

a. Borders will consider this book to be a bestseller if it sells 100,000 copies. What is the probability that it is a bestseller?

b. What order quantity maximizes Borders' expected profit?

c. How much is this expected profit?

d. What is the corresponding fill rate?

e. The marginal production cost for the publisher is $3 per book. How much profit does the publisher make given Borders' actions?

Reference no: EM131743117

Questions Cloud

Discuss how this event impacted the work you are reading : Discuss how this event impacted the work you are reading. The effect may be subtle
How many dvds should blockbuster order : a. How many DVDs should Blockbuster order? b. What is its expected profit?
Discuss dominant themes of these eurocentric portrayals : What are the dominant themes of these Eurocentric portrayals? In an expository essay
Explain the cultural identifiers discussed in the articles : Explain the cultural identifiers discussed in the articles. Identifies 2-3 arguments presented for and 2-3 arguments against the issue.
What order quantity maximizes borders : a. Borders will consider this book to be a bestseller if it sells 100,000 copies. What is the probability that it is a bestseller?
Analyze the implication of the affordable care act : Determine the extent to which employee lifestyle choices and health economics would factor in to your chosen plan. Provide a rationale for the response.
Round to 3 decimal places as needed : Given P(A) = 0.98, P(B) = 0.21, P(C) = 0.04 and that events A, B, and C are independent, what is P(A, B, and C). Answer in decimal form.
Define who have been other dreamers in the evers family : Who have been other "dreamers" in the Evers family, and what were their dreams? Did they achieve their dreams
Round your answer for the test statistic : Round your answer for the test statistic to two decimal places and your answer for the -value to three decimal places.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd