Use the Data Set Shown Below to Answer the Following

question 21

Multiple Choice

Use the data set shown below to answer the following question(s) . For this Newsvendor model,fit a distribution with Crystal Ball and use the Decision Table tool for analysis.Use 5,000 trials for the simulation.
-Using Crystal Ball for the data set shown above,identify the purchase quantity that provides the largest average profit.

• A)Purchase quantity 54
• B)Purchase quantity 53
• C)Purchase quantity 56
• D)Purchase quantity 60

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Definitions:

Slope

A measure of the steepness, incline, or grade of a line, calculated as the ratio of the vertical change to the horizontal change between two points.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices.

Expected Return

The average of all possible returns for an investment, weighted by the likelihood of each outcome.

Risky Asset

Asset that provides an uncertain flow of money or services to its owner.