Sharlene, the Risk Manager of Chief Rocking Records, Has Been

Multiple Choice

Sharlene, the risk manager of Chief Rocking Records, has been asked to assist the corporate strategy team in planning a new compact disk factory. The team wants Sharlene's input on how many CDs they should produce. Sharlene knows the losses are distributed normally, and the probability of loss is 8%. She will use 2 standard deviations for the calculations. What is the number of exposure units needed for the actual loss to be within 10% of the expected?

A) 4,300
B) 4,600
C) 4,900
D) Infinite.