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Brian wishes to determine the number of copies of The St. John’s Times he should purchase each Sunday. A study of the historical data showed that the demand is approximately normally distributed with mean = 23.45 and standard deviation = 8.71. He purchases the papers for 50 cents and can sell them for $1.00. He can salvage unsold copies for 15 cents.
a) Calculate the overage and underage cost.
c) How many copies of the Times should Brian purchase?
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