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Nara is a fashion apparel and accessories chain store that procures a line of new shorts at $10 each from its European supplier.
Unfortunately, at the time of order placement, demand is still unknown. Nara forecasts that its demand is normally distributed with mean of 2100 and a standard deviation of 1200 units.
Nara sells these shorts at $22 each. Unsold shorts have little salvage values and they would be donated to charity. Based on this information:
How many shorts should Nara buy from its supplier to maximize expected profit?
Note:- My question is regarding the round-up rule for the probability we get in this question which is 0.5455. it falls between two z values, 0.11 and 0.12. which value should be used and why?
Excel suggests 0.11 but excel does not account for the round-up rule
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