Solved Problem 3
Swell Productions is sponsoring an outdoor conclave for owners of collectible and classic Fords. The concession stand in the T-Bird area will sell clothing such as T-shirts and official Thunderbird racing jerseys. Jerseys are purchased from Columbia Products for $40 each and are sold during the event for $75 each. If any jerseys are left over, they can be returned to Columbia for a refund of $30 each. Jersey sales depend on the weather, attendance, and other variables. The following table shows the probability of various sales quantities. How many jerseys should Swell Productions order from Columbia for this one-time event?
Sales Quantity |
Probability |
Quantity Sales |
Probability |
|---|---|---|---|
100 |
0.05 |
400 |
0.34 |
200 |
0.11 |
500 |
0.11 |
300 ... |
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