3.1 If the probability of selling a unit from inventory, Prob1QD Q2, decreases, what happens to...

Question:

3.1 If the probability of selling a unit from inventory, Prob1QD Ú Q2, decreases, what happens to the probability of selling less than this quantity, Prob1QD 6 Q2? What is the effect of this change on the expected marginal benefit from keeping a unit in inventory? On the expected marginal cost? On the optimal inventory?

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