Suppose you are the CEO of MBS Direct and you want to perfor

Suppose you are the CEO of MBS Direct, and you want to perform a probability analysis. What would be the number of STAT 200 textbook bundles you would order so that you stay below 5% probability of having to back-order from Pearson Custom Publishing? (Note: Our Provost would be very angry when she hears that textbook bundles have to be back-ordered. In any case, we no longer need the service of MBS Direct as we are moving to 100% to free eResources or OLI. Auf Wiedersehen, MBS Direct......)

Solution

Incomplete information int he problem. You are simply asking the confidence level to be above 95% (or below 5%) of having to back-order from Pearson Custom Publishing. Without any additional information about what is the probability of a student/reader buying it, it is not possible to provide an answe.r