Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self-Destruction, an exposé on a famous politician’s lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book’s retail price is $20, and the wholesale price is $12. The publisher will buy back the retailer’s leftover copies at a full refund, but McClure Books incurs $4 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a normal distribution with a mean of 200 and a standard deviation of 80. Round your answer to 2 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers. Dan will consider this book to be a blockbuster for him if it sells more than 400 units. The probability that Power and Self-Destruction will be a blockbuster is [xa]% (use the standard normal table below). Dan considers a book a “dog” if it sells less than 50% of his mean forecast. The probability this exposé will be a “dog” is [xb]% (use the standard normal table below). The probability that demand for this book will be within plus and minus 20% range of the mean forecast is [xc]% (use the standard normal table below). In order to achieve a 95% in-stock probability, Dan needs to order [xh] copies of the book (use the standard normal table below). If Dan achieves a 95% in-stock probability, then the probability that some customer won’t be able to purchase a copy of the book will be [xi]%. Suppose Dan orders 300 copies of the book. Dan’s expected leftover inventory will be [xj] copies, expected sales will be [xk] copies, and expected profit will be $[xl] (use the standard normal table below

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Chapter2: Introduction To Spreadsheet Modeling
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Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self-Destruction, an exposé on a famous politician’s lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book’s retail price is $20, and the wholesale price is $12. The publisher will buy back the retailer’s leftover copies at a full refund, but McClure Books incurs $4 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a normal distribution with a mean of 200 and a standard deviation of 80.

Round your answer to 2 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers.

Dan will consider this book to be a blockbuster for him if it sells more than 400 units. The probability that Power and Self-Destruction will be a blockbuster is [xa]% (use the standard normal table below).

Dan considers a book a “dog” if it sells less than 50% of his mean forecast. The probability this exposé will be a “dog” is [xb]% (use the standard normal table below).

The probability that demand for this book will be within plus and minus 20% range of the mean forecast is [xc]% (use the standard normal table below).

In order to achieve a 95% in-stock probability, Dan needs to order [xh] copies of the book (use the standard normal table below).

If Dan achieves a 95% in-stock probability, then the probability that some customer won’t be able to purchase a copy of the book will be [xi]%.

Suppose Dan orders 300 copies of the book. Dan’s expected leftover inventory will be [xj] copies, expected sales will be [xk] copies, and expected profit will be $[xl] (use the standard normal table below).

F(z)
(z)
F(z)
I(z)
F(z)
I(z)
-4.0
.0000
.0000
-1.3
.0968
.0455
1.4
.9192
1.4367
-3.9
.0000
.0000
-1.2
.1151
.0561
1.5
.9332
1.5293
-3.8
.0001
.0000
-1.1
.1357
.0686
1.6
.9452
1.6232
-3.7
.0001
.0000
-1.0
.1587
.0833
1.7
.9554
1.7183
-3.6
.0002
.0000
-0.9
.1841
.1004
1.8
.9641
1.8143
-3.5
.0002
.0001
-0.8
2119
.1202
1.9
.9713
1.9111
-3.4
.0003
.0001
-0.7
2420
.1429
2.0
.9772
2.0085
-3.3
.0005
.0001
--0.6
2743
.1687
2.1
.9821
2.1065
-3.2
.0007
.0002
--0.5
.3085
.1978
2.2
.9861
2.2049
-3.1
.0010
.0003
-0.4
.3446
.2304
2.3
.9893
2.3037
-3.0
.0013
.0004
-0.3
.3821
.2668
2.4
.9918
2.4027
-2.9
.0019
.0005
-0.2
.4207
.3069
2.5
.9938
2.5020
-2.8
.0026
.0008
-0.1
4602
.3509
2.6
.9953
2.6015
Transcribed Image Text:F(z) (z) F(z) I(z) F(z) I(z) -4.0 .0000 .0000 -1.3 .0968 .0455 1.4 .9192 1.4367 -3.9 .0000 .0000 -1.2 .1151 .0561 1.5 .9332 1.5293 -3.8 .0001 .0000 -1.1 .1357 .0686 1.6 .9452 1.6232 -3.7 .0001 .0000 -1.0 .1587 .0833 1.7 .9554 1.7183 -3.6 .0002 .0000 -0.9 .1841 .1004 1.8 .9641 1.8143 -3.5 .0002 .0001 -0.8 2119 .1202 1.9 .9713 1.9111 -3.4 .0003 .0001 -0.7 2420 .1429 2.0 .9772 2.0085 -3.3 .0005 .0001 --0.6 2743 .1687 2.1 .9821 2.1065 -3.2 .0007 .0002 --0.5 .3085 .1978 2.2 .9861 2.2049 -3.1 .0010 .0003 -0.4 .3446 .2304 2.3 .9893 2.3037 -3.0 .0013 .0004 -0.3 .3821 .2668 2.4 .9918 2.4027 -2.9 .0019 .0005 -0.2 .4207 .3069 2.5 .9938 2.5020 -2.8 .0026 .0008 -0.1 4602 .3509 2.6 .9953 2.6015
-2.8
.0026
.0008
-0.1
.4602
.3509
2.6
.9953
2.6015
-2.7
.0035
.0011
.0
.5000
.3989
2.7
.9965
2.7011
-2.6
.0047
.0015
.1
.5398
.4509
2.8
.9974
2.8008
-2.5
.0062
.0020
.2
.5793
.5069
2.9
.9981
2.9005
-2.4
.0082
.0027
.3
.6179
.5668
3.0
.9987
3.0004
-2.3
.0107
.0037
.4
.6554
.6304
3.1
.9990
3.1003
-2.2
.0139
.0049
.5
.6915
.6978
3.2
.9993
3.2002
-2.1
.0 179
.0065
.6
.7257
.7687
3.3
.9995
3.3001
-2.0
.0228
.0085
.7
.7580
.8429
3.4
.9997
3.4001
-1.9
.0287
.0111
.8
7881
.9202
3.5
.9998
3.5001
-1.8
.0359
.0143
.9
.8159
1.0004
3.6
.9998
3.6000
-1.7
.0446
.0183
1.0
.8413
1.0833
3.7
.9999
3.7000
-1.6
.0548
.0232
1.1
.8643
1.1686
3.8
.9999
3.8000
-1.5
.0668
.0293
1.2
.8849
1.2561
3.9
1.0000
3.9000
-1.4
.0808
.0367
1.3
.9032
1.3455
4.0
1.0000
4.0000
Transcribed Image Text:-2.8 .0026 .0008 -0.1 .4602 .3509 2.6 .9953 2.6015 -2.7 .0035 .0011 .0 .5000 .3989 2.7 .9965 2.7011 -2.6 .0047 .0015 .1 .5398 .4509 2.8 .9974 2.8008 -2.5 .0062 .0020 .2 .5793 .5069 2.9 .9981 2.9005 -2.4 .0082 .0027 .3 .6179 .5668 3.0 .9987 3.0004 -2.3 .0107 .0037 .4 .6554 .6304 3.1 .9990 3.1003 -2.2 .0139 .0049 .5 .6915 .6978 3.2 .9993 3.2002 -2.1 .0 179 .0065 .6 .7257 .7687 3.3 .9995 3.3001 -2.0 .0228 .0085 .7 .7580 .8429 3.4 .9997 3.4001 -1.9 .0287 .0111 .8 7881 .9202 3.5 .9998 3.5001 -1.8 .0359 .0143 .9 .8159 1.0004 3.6 .9998 3.6000 -1.7 .0446 .0183 1.0 .8413 1.0833 3.7 .9999 3.7000 -1.6 .0548 .0232 1.1 .8643 1.1686 3.8 .9999 3.8000 -1.5 .0668 .0293 1.2 .8849 1.2561 3.9 1.0000 3.9000 -1.4 .0808 .0367 1.3 .9032 1.3455 4.0 1.0000 4.0000
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