Scenario 13.1 - Nefarious

question 30

Multiple Choice

Scenario 13.1 - Nefarious
The tenured professor routinely led student groups on factory tours in exotic locales,and one popular destination was an island south of Miami.The students enjoyed this happy little island and the professor liked it because he could supplement his income by bringing back a few boxes souvenirs he could sell to his friends.The souvenirs cost the professor $125 a box and he sells them for $290 a box.Souvenirs that dry out due to age can be sold for $80.Experience has shown that the demand for boxes of these souvenirs has a mean of 80 with a standard deviation of 20.
-Naturally,the professor will purchase the optimal number of boxes.(He's had a course or two in supply chain management and knows this model well. ) What is the expected number of boxes that he doesn't sell?

• A)5
• B)18
• C)13
• D)7

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