Cervantes Reese
10/07/2023 · Junior High School
You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper for \( \$ 0.25 \) a copy. You sell a copy of San Pedro Times for \( \$ 1.00 \). Daily demand is distributed normally with mean \( =250 \) and standard deviation = 50 . At the end of each morning, any leftover copies are worthless and they go to a recycle bin. Part (a). How many copies of San Pedro Times should you buy each morning (2 point)? Part (b). Based on (a) what is the probability that you will run out of stock (1 point)? I
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(a) Buy 250 copies each morning.
(b) Probability of running out of stock is 50%.
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