If demand is D1, what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the mon
th of July?
1 answer:
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Answer: The complete question is found in the attachment
Step-by-step explanation:
Law of large numbers: The probability of occurrence of an event becomes closer to the theoretical probability as the number of trials increases
P(an ace) = 1/6
= 0.1667
= 16.67%
a) In 600 rolls, the value will be close to 16.67. compared to 60 rolls
Greater than 20% interval doesn't include 16.67%. So, for more than 20% ace, 60 rolls is better.
b) More than 15% interval includes 16.67. So, it is better to roll 600 times
c) The interval between 15% and 20% include 16.67% and hence, 600 rolls is better
d) Larger number of trials is better to get exactly 16
So, 600 rolls is better
