Milk Is Stocked at the Grocery Store Each Week

question 87

Essay

Milk is stocked at the grocery store each week. At the end of the week unsold milk is reduced in price by 70% and always sells for this lower price instantly. If demand for milk is normal with a mean of 200 gallons and standard deviation of 25 gallons, find the price a fresh gallon of milk sells for. Assume a service level of 95% and that the store purchases milk for $2 per gallon.

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Definitions:

Median

The middle value in a data set when the values are arranged in ascending or descending order, or the average of the two middle values when there is an even number of values.

Set of Data

A collection of related data points, values, or pieces of information that are grouped together for analysis.

Modal Ethnicity

The most frequently occurring ethnicity within a given population or dataset.

Figure

A graphical representation of data or mathematical concepts.