Scenario 15.1 - The Jerk Store
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the islands gladly pay $8.75 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600.
-If each Jerk Store location is acting independently, how many packets of seasoning should they stock?

Question

Quizplus · Accepted Answer

The correct answer is A.The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600. To determine the number of packets that should be stocked, we can use the z-score formula:z = (x - μ) / σwhere:x is the number of packets to be stockedμ is the mean demandσ is the standard deviationTo ensure that the Jerk Store has enough packets to meet the demand, we can use a z-score of 1.645, which corresponds to a 95% confidence level. This means that there is a 95% probability that the demand will be less than or equal to the number of packets stocked.Plugging in the values, we get:1.645 = (x - 2500) / 600x = 2500 + 1.645 * 600x = 2840Therefore, the Jerk Store should stock 2840 packets of seasoning.

Scenario 15.1 - the Jerk Store