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5. As a part of their new alumni fundraising campaign, Drexel had a local artist design a craved-wood dragon statue which will be sent to all alumni who donate during the campaign. The fixed cost for the design and production setup is $100,000, and it costs an additional $34 per statue in material, labor, and shipping costs. The current alumni campaign asks each alum to donate $50, but after accounting for processing costs, each donation actually brings in $42. Given the success levels of past fundraising campaigns, Drexel is forecasting that the number of alumni who donate will be normally distributed, with a mean of 60,000 and a standard deviation of 15,000. Once the fundraising campaign is over, any statues left will be sold through the bookstore at $10 per statue. Using 100 trials, decide whether Drexel should produce 50000, 60000, or 70000 statues. What is the probability of a stockout during the alumni fundraising campaign?

5. As a part of their new alumni fundraising campaign, Drexel had a local artist design a craved-wood dragon statue which will be sent to all alumni who donate during the campaign. The fixed cost for the design and production setup is $100,000, and it costs an additional $34 per statue in material, labor, and shipping costs. The current alumni campaign asks each alum to donate $50, but after accounting for processing costs, each donation actually brings in $42. Given the success levels of past fundraising campaigns, Drexel is forecasting that the number of alumni who donate will be normally distributed, with a mean of 60,000 and a standard deviation of 15,000. Once the fundraising campaign is over, any statues left will be sold through the bookstore at $10 per statue. Using 100 trials, decide whether Drexel should produce 50000, 60000, or 70000 statues. What is the probability of a stockout during the alumni fundraising campaign?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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5. As a part of their new alumni fundraising campaign, Drexel had a local artist design a craved-wood dragon statue which will be sent to all alumni who donate during the campaign. The fixed cost for the design and production setup is $100,000, and it costs an additional $34 per statue in material, labor, and shipping costs. The current alumni campaign asks each alum to donate $50, but after accounting for processing costs, each donation actually brings in $42. Given the success levels of past fundraising campaigns, Drexel is forecasting that the number of alumni who donate will be normally distributed, with a mean of 60,000 and a standard deviation of 15,000. Once the fundraising campaign is over, any statues left will be sold through the bookstore at $10 per statue. Using 100 trials, decide whether Drexel should produce 50000, 60000, or 70000 statues. What is the probability of a stockout during the alumni fundraising campaign?
Transcribed Image Text:5. As a part of their new alumni fundraising campaign, Drexel had a local artist design a craved-wood dragon statue which will be sent to all alumni who donate during the campaign. The fixed cost for the design and production setup is $100,000, and it costs an additional $34 per statue in material, labor, and shipping costs. The current alumni campaign asks each alum to donate $50, but after accounting for processing costs, each donation actually brings in $42. Given the success levels of past fundraising campaigns, Drexel is forecasting that the number of alumni who donate will be normally distributed, with a mean of 60,000 and a standard deviation of 15,000. Once the fundraising campaign is over, any statues left will be sold through the bookstore at $10 per statue. Using 100 trials, decide whether Drexel should produce 50000, 60000, or 70000 statues. What is the probability of a stockout during the alumni fundraising campaign?
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