SuperFun Toys Case Study and Data Set.

(1) Ever wonder why a survey of the American population often has what seems like a very small sample size? 2000 people can tell us what the American population is thinking about. We have formulas to calculate an appropriate sample size for both estimation of the mean and estimation of the proportion. How do they work and why do we need so few to tell us what so many might be thinking? – 100 WORDS Review the SuperFun Toys Case Study and Data Set. • Use the sales forecaster's prediction to describe a normal probability distribution that can be used to approximate the demand distribution. • Sketch the distribution and show its mean and standard deviation. Hint: To find the standard deviation, think Empirical Rule covered in Week 1. • Compute the probability of a stock-out for the order quantities suggested by members of the management team (i.e. 15,000; 18,000; 24,000; 28,000). • Compute the projected profit for the order quantities suggested by the management team under three scenarios: pessimistic in which sales are 10,000 units, most likely case in which sales are 20,000 units, and optimistic in which sales are 30,000 units. • One of SuperFun's managers felt the profit potential was so great the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock- outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?