Black forest cakes, Suppose Betty wants to bake enough

Black forest cakes

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Question

Betty Cooker runs a bakery in San Francisco that specializes in her famous Black Forest cakes. She estimates that the daily demand for this cake is normally distributed with a mean of 60 and a standard deviation of 20. Each customer wants to buy exactly one cake. Every day in the morning, Betty Cooker and her team of bakers prepare a fresh batch of the cakes for sale that day. Her costs to bake and top each cake are $5. Each cake sells for $20. Betty's Bakery prides itself on its fresh assortment, so cakes not sold by the end of that day are given away to a soup kitchen for the homeless.

Suppose Betty wants to bake enough cakes so that she can be 99.0% sure that she can satisfy the demand of all of her customers. How many cakes should she prepare daily in the morning?

Reference no: EM133977225

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