If a store runs out of advertised material during a sale, customers become upset, and the firm loses not only the sale, but also goodwill. From past experience, a record store finds that the mean number of CDs sold in a sale is 845, the variance is 225, and that a histogram of the demand appears mound shaped. The manager is willing to accept a 2.5% chance that a CD will be sold out. About how many CDs should the manager order for an upcoming sale?
This question was answered on: May 23, 2022
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