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A if capacity is set at 25 million tons how much of a

The Ace Steel Mill estimates the demand for steel in millions of tons per year as follows:

MILLIONS OF TONS PROBABILITY

12 .15

15 .20

18 .30

20 .20

25 .15

a. If capacity is set at 25 million tons, how much of a capacity cushion is there?

b. What is the probability of idle capacity, and what is the average utilization of the plant at 25 million tons of capacity?

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