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Sally's Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event. During the event, Sally can sell T-shirts for $ 20 apiece. However, when the event ends, any unsold T- shirts are sold for $ 4 apiece. It costs Sally $ 8 to make a specialty T-shirt. Sally's estimate of demand is the following:Demand Probability300......0.05400......0.10500......0.40600......0.30700......0.10800......0.05
a. What is the service rate (or optimal fractile)?
b. How many T- shirts should she produce for the upcoming event?
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