Solved: Passing on a highly demanded design means unsold, Business Management

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Passing on a highly demanded design means unsold

A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season. Choosing a poorly demanded design means lots of unsold merchandise and losses that are $200,000 on average. Passing on a highly demanded design means unsold merchandise and missing out on profits that are $300,000 on average. What probability of a design's success should he be in order to choose to carry it?

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Business Management: Passing on a highly demanded design means unsold

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