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Alabama pins commemorating the 2013 National Championship game are purchased in multiples of 50 for your college organization at $1.90 each. When sold during the event the selling price is $7.50. After the event their salvage value is just $0.75.
From past events, you calculate the probability of selling different quantities of pins within a range from 50 to 250:
Customer Demand 50 100 150 200 250
Prob. Of Occurrence .12 .25 .20 .28 .15
How many pins should you buy and have on hand for the event? (Use excel and show your formulas with Ctrl ~)
Does the decision change if you exchange the probabilities for 200 and 250? If so, what is the change? (Show your excel sheet with the change made; no need for Ctrl~ on b only).
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