A Newspaper Boy Is Trying to Perfect His Business in Order

question 159

Essay

A newspaper boy is trying to perfect his business in order to maximize the money he can save for a new car. Paper sales are normally distributed, with a mean of 100 and standard deviation of 10. He sells papers for $.5 and pays $.30 for them. Unsold papers are trashed with no salvage value. How many papers should he order each day and what % of the time will he experience a stockout? Are there any drawbacks to the order size proposed and how could the boy address such issues?

---

Definitions:

Etiologies

The study of the causes or origins of diseases and conditions, aiming to understand why a disease develops in a particular individual or context.

Specific Approaches

This term refers to particular methods or techniques developed for addressing specific tasks, problems, or areas of research.

Socio-Historical Context

The combination of social, economic, cultural, and historical circumstances at a certain time that influences individuals, communities, and societies.

Prospective Therapist

An individual in the process of completing the necessary education, training, and licensure to become a professional therapist.