A bookstore buys 15 copies of a book at a price of $20 each and sells them
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A bookstore buys 15 copies of a book at a price of $20 each and sells them at a price of $30. Suppose that, after a year, the bookstore may return any unsold copies of the book to the publisher at the original price of $20. Let X be the number of copies sold during the year and assume that the probability function of X is given by
(i) Check that f (x) is a proper probability function.
(ii) Find the expected number of copies sold in a year.
(iii) Find the expected profit of the bookstore from the sales of this particular book.
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Related Book For
Introduction To Probability Volume 2
ISBN: 9781118123331
1st Edition
Authors: Narayanaswamy Balakrishnan, Markos V. Koutras, Konstadinos G. Politis
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