The owner of Western Clothing Company has determined that the company must sell 670 pairs of denim jeans each month to break even (i.e., to reach the point where total revenue equals total cost). The company’s marketing department has estimated that monthly demand is normally distributed, with a mean of 805 pairs of jeans and a standard deviation of 207 pairs. What is the probability that the company will make a profit each month?
The owner of Western Clothing Company has determined that the company must sell 670 pairs of denim jeans each month to break even (i.e., to reach the point where total revenue equals total cost). The company’s marketing department has estimated that monthly demand is normally distributed, with a mean of 805 pairs of jeans and a standard deviation of 207 pairs. What is the probability that the company will make a profit each month?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section10.5: Introduction To @risk
Problem 20P: Use @RISK to analyze the sweatshirt situation in Problem 14 of the previous section. Do this for the...
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The owner of Western Clothing Company has determined that the company must sell 670 pairs
of denim jeans each month to break even (i.e., to reach the point where total revenue equals total
cost). The company’s marketing department has estimated that monthly demand is
with a mean of 805 pairs of jeans and a standard deviation of 207 pairs. What is the
probability that the company will make a profit each month?
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