Qnt/561 Superfun Toys Case Study

SuperFun Toys Case StudyThe demand for new Weather Teddy bear toy will be made up of a large sum of individual random variables that are independent of each other. Therefore the distribution will approximate a normal distribution. A normal distribution has the following qualities that are relevant to this case (Hamburg, 1979)The meanis at the center of the distribution.The distribution curve is bell-shaped and symmetrical around the meanThe probability density under the curve is equal to 1.Half of the values are to the left of the center and the other half to the rightThe probability distribution can be described by parameters of mean and standard deviation in the following manner(Black, 2011). One standard deviation on either side of the mean covers 68% of the middle of the distribution i.e. sales between 15,000 and 25,000 unitsTwo standard deviations on either side of the mean covers about 95% of the middle of the distribution i.e. sales between 10,000 and 30,000 unitsThree standard deviation on either side of the mean covers about 99.9% of the distribution i.e. sales between 5,000 and 35,000 unitsWith these characteristics of the normal distribution we can establish the probability