Suppose That the Demand for Cars Is Normally Distributed with Mean

question 63

Essay

Suppose that the demand for cars is normally distributed with mean of 120 and standard deviation of 20.Use @Risk simulation add-in to determine the "best" order quantity; that is,the one that has the largest expected profit.Using the statistics and/or graphs from @Risk,discuss whether this order quantity would not be considered the "best" by the car dealer.

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Definitions:

Prospectus

Summarizes information about a new security issue and the issuing company.

Best Efforts Deals

An agreement where an underwriter commits to sell as much of an offering as possible to the public, without guaranteeing the entire issue will be sold.

Well-known Issuers

Companies or entities that have a strong reputation in the market for their credibility and reliability in issuing financial securities.

Established Issuers

Companies or entities that have a solid track record of financial stability and success, often with a long history of issuing debt or equity.