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:

Contract

A legally binding agreement between parties that outlines the terms and conditions of a particular arrangement or deal.

Forward Contracts

Agreements to buy or sell an asset at a future date for a price agreed upon today, often used for hedging or speculation.

Marked-To-The Market

An accounting practice where assets or securities are valued according to their current market price, not their purchase price or book value.

Resold

Items or assets that have been purchased and then sold to another party, potentially at a different price.