Question

profit when demand is equal to its average (60,000 units)? (b) Modeling demand as a normal random variable with a mean of 60,000 and a standard deviation of 15,000, simulate the sales of The Dougie doll using a production quantity of 60,000 units. What is the estimate of the average profit associated with the production quantity of 60,000 dolls? Round your answer in whole dollar. How does this compare to the profit corresponding to the average demand (as computed in part a)? d)Besides average profit, what other factors should FTC consider in determining a production quantity? Compare the four production quantities (40,000; 50,000; 60,000; and 70,000) using all these factors. What trade-offs occur? If required, round Probability of a Loss to three decimal places and Probability of a Shortage to two decimal places. Round your answer in whole dollar Production Average Profit Standard Maximum Probability of Probability of a Loss a Shortage Quantity Net ProfitDeviation Net Profit 40,000$ 50,000 $ 60,000 70,000 $

Answer 1

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