Lowe's sells a very popular remote control operated ceiling fan, the Lantern Bay 54-in Matte Black LED Indoor/Outdoor Ceiling fan, with most of the sales being made in the summer months. Lowes makes a one-time purchase of these fans prior to each summer season at a cost of $40 each and sells each Lantern Bay fan for $200. Any fans unsold at the end of the summer season are marked down to $50 and sold in a special fall sale. By experience, all marked-down fans are sold. The following is the number of Lantern Bay fans sold during the last past 10 summers: 30, 50, 30, 60, 10, 40, 30, 30, 20, 40. 1. Estimate the mean and the variance of the demand for Lantern Bay fans each summer. 2. Assume that the demand for Lantern Bay fans each summer follow a normal distribution, with mean and variance gi
gaby131o
Answered question
2022-09-24
Lowe's sells a very popular remote control operated ceiling fan, the Lantern Bay 54-in Matte Black LED Indoor/Outdoor Ceiling fan, with most of the sales being made in the summer months. Lowes makes a one-time purchase of these fans prior to each summer season at a cost of $40 each and sells each Lantern Bay fan for $200. Any fans unsold at the end of the summer season are marked down to $50 and sold in a special fall sale. By experience, all marked-down fans are sold. The following is the number of Lantern Bay fans sold during the last past 10 summers:
1. Estimate the mean and the variance of the demand for Lantern Bay fans each summer.
2. Assume that the demand for Lantern Bay fans each summer follow a normal distribution, with mean and variance given by your answer on 1). Determine the optimal number of fans for Lowes to buy prior to each summer season.