Egress, Inc., is a small company that designs, produces, and sells ski jackets and other...

Egress, Inc., is a small company that designs, produces, and sells ski jackets and other coats. The creative design team has labored for weeks over its new design for the coming winter season. It is now time to decide how many ski jackets to produce in this production run. Because of the lead times involved, no other production runs will be possible during the season. Predicting ski jacket sales months in advance of the selling season can be quite tricky. Egress has been in operation for only three years, and its ski jacket designs were quite successful in two of those years. Based on realized sales from the last three years, current economic conditions, and professional judgment, 12 Egress employees have independently estimated demand for their new design for the upcoming season.Their estimates are listed in Table 10.2.

To assist in the decision on the number of units for the production run, management has gathered the data in Table 10.3. Note that S is the price Egress charges retailers.Any ski jackets that do not sell during the season can be sold by Egress to discounters for V per jacket.The fixed cost of plant and

equipment is F. This cost is incurred regardless of the size of the production run.

Egress management believes that a normal distribution is a reasonable model for the unknown demand in the coming year. What mean and standard deviation should Egress use for the demand distribution?