Exhibit 10-2
A large apparel company wants to determine the profitability of one of its most popular products, a particular type of jacket. Demand is uncertain, due to economic conditions, competition, weather and other factors, and the following probability distributions have been estimated for each of the company's three regions:
-Refer to Exhibit 10-2.Total sales is a product of three different types of input distributions.What does the output distribution look like
What is the standard deviation of the total sales
What are the 5th and 95th percentiles of this distribution
Definitions:
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