How many pretzels should be ordered?

Spreadsheet modeling and decision analysis

Question on Spreadsheet modeling and decision analysis:-

 

K’s brewery is sponsoring sports games and putting up “beer gardens”, selling drinks and snacks. For the first such event, the manager of the beer garden needs to determine how many pretzels to order. The local bakery offers a contract for 120, 150 or 180 pretzels, at a cost of Euro 0.40 each. The sales price is Euro 1.50. Any unsold pretzel is given to a charity.

 

If the game is interesting, the manager thinks that fewer people will come to the beer garden. In this case, demand is expected to be normally distributed, with a mean of 140 and a standard deviation of 20. However, if the game is boring, more people will come, with normally distributed demand (mean 190 and standard deviation 15). Based on the profile of the teams playing in the event, the manager thinks that there is a 40% chance that the game will end up being boring. Based on expected profit and expected percentage of unsold pretzels, how many pretzels should be ordered?

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.