Appendix: To Forecast or Not To Forecast

Step-by-step

Normal probability density function for mean = 50 and stdev = 10. Image source: author from Evo Pricing (CC with attribution)
Cumulative demand function. Image source: author from Evo Pricing (CC with attribution)
Probability of demand being at least N. Image source: author from Evo Pricing (CC with attribution)
Net profit from the shipment on the N-th piece. Image source: author from Evo Pricing (CC with attribution)
Total profit with N shipments. Image source: author from Evo Pricing (CC with attribution)

The learnings and benefits of the ‘science of billions’: what if you could access more data than Amazon? Free Evo University project: https://evo.ltd/join

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