Compute the probability of a stock-out for the order quantities suggested by members of the management team (i.e. 15,000; 18,000; 24,000; 28,000).

Purpose of Assignment

The purpose of this assignment is for students to learn how to make managerial decisions using a case study on Normal Distribution. This case uses concepts from Weeks 1 and 2. It provides students an opportunity to perform sensitivity analysis and make a decision while providing their own rationale. This assignment also shows students that statistics is rarely used by itself. It shows tight integration of statistics with product management.

• Compute      the probability of a stock-out for the order quantities suggested by      members of the management team (i.e. 15,000; 18,000; 24,000; 28,000).
• Compute      the projected profit for the order quantities suggested by the management      team under three scenarios: pessimistic in which sales are 10,000 units,      most likely case in which sales are 20,000 units, and optimistic in which      sales are 30,000 units. – Lourde