Store a uses the newsvendor model to manage its inventory. demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. what is its in-stock probability if store a’s order quantity is 800 units?

Step-by-step explanation:

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".  

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Let X the random variable that represent the Demand for its product on this case, and for this case we know the distribution for X is given by:  

And let represent the sample mean, the distribution for the sample mean is given by:  

What is its in-stock probability if Store A’s order quantity is 800 units?

We are looking for this probability:

What is its in-stock probability if Store A’s order quantity is 800 units?

So we can find the following values:

and

Sor this problem we can use the z score formula given by:

If we find the z score for the value 800 we got:

And if we find:

And by the complement rule:

answer:

9

step-by-step explanation:

9 times 9 =81