- Upon further reflection, Dan decided to look at the historical data on forecasts and actual sales of comparable books:
Book Forecast Actual
a 800 702
b 850 1568
c 875 1648
e 900 1319
f 925 878
g 925 1200
h 950 1499
i 975 437
j 1000 606
k 1025 1204
l 1150 476
m 1200 454
n 1275 1382
o 1400 486
p 1450 1691
q 1800 466
Question: Suppose the appropriate critical ratio to choose an order quantity is 0.69 (which may or may not correspond to the critical ratio evaluated in other questions) and Dan’s forecast remains 1000 books. If Dan were to use the empirical distribution function table to choose an order, how many books would he purchase?
Question 2:Suppose Dan orders four copies of the poetry book. What is Dan’s expected sales? Show all work.
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