Recall that Walton Bookstore buys calendars for $7.50, sells them at the regular price of $10, and gets a refund of $2.50 for all calendars that cannot be sold. As in Example 11.2 of Chapter 11,...

Recall that Walton Bookstore buys calendars for $7.50, sells them at the regular price of $10, and gets a refund of $2.50 for all calendars that cannot be sold. As in Example 11.2 of Chapter 11, Walton estimates that demand for the calendar has a triangular distribution with minimum, most likely, and maximum values equal to 100, 175, and 300, respectively. How many calendars should Walton order to maximize expected profit?

Objective To use critical fractile analysis to find the optimal order quantity