Individual AssignmentNewsvendor ModelDan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self Destruction, an expos on a famous politician’s lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book’s retail price is $20, and the wholesale price is $12. The publisher will buy-back the retailer’s leftover copies at a full refund, but McClure Books incurs $4 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a Normal distribution with mean 200 and standard deviation 80.a) Dan will consider this book to be a blockbuster for him if it sells more than 400 units.What is the probability Power and Self Destruction will be a blockbuster?b) Dan consider a book a dog if it sells less than 50% of his mean forecast. What is the probability this expos is a dog?c) What order quantity maximizes Dans expected profit?Individual AssignmentNewsvendor ModelDan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must decide how many copies to order of a new book, Power and Self Destruction, an expos on a famous politician’s lurid affairs. Interest in the book will be intense at first and then fizzle quickly as attention turns to other celebrities. The book’s retail price is $20, and the wholesale price is $12. The publisher will buy-back the retailer’s leftover copies at a full refund, but McClure Books incurs $4 in shipping and handling costs for each book returned to the publisher. Dan believes his demand forecast can be represented by a Normal distribution with mean 200 and standard deviation 80.a) Dan will consider this book to be a blockbuster for him if it sells more than 400 units.What is the probability Power and Self Destruction will be a blockbuster?b) Dan consider a book a dog if it sells less than 50% of his mean forecast. What is the probability this expos is a dog?c) What order quantity maximizes Dans expected profit?