John sells decorated eggs on Easter. Each egg costs him $2, and John can sell the decorated eggs for $5 each, but the unsold eggs have $0 salvage value. John knows that the demand follows the normal distribution with mean = 80 and standard deviation = 12. According to the newsvendor model, what is the optimal number of eggs John should prepar

QUESTION 15
Which of the following statements about the news vendor model is correct?
-QIf the selling price increases, the optimal  service level decreases.
-OIf the production (ordering) cost increases the  optimal service level decreases.
-QIf the salvage value increases, the optimal  service level decreases.
-QIf the standard deviation of the demand increases, the optimal service level decreases.  4 points

QUESTION 16
John sells decorated eggs on Easter. Each egg costs him $2, and John can sell the decorated eggs for $5 each, but the unsold eggs have $0 salvage value. John knows that the demand follows the normal distribution with mean = 80 and standard deviation = 12. According to the newsvendor model, what is the optimal number of eggs John should prepare?
O 83
O 75
O 78
O 86