A small store buys every week six 2-l bottles of milk at a price of $1.25 each.

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A small store buys every week six 2-l bottles of milk at a price of $1.25 each. If at the end of the week a bottle has not been sold, the store returns it to the provider and receives 30 cents back. The probabilities that the number of 2-l bottles sold during a week is 0, 1, 2, 3, 4, 5, and 6 equal 0.05, 0.10, 0.10, 0.20, 0.20, 0.20, and 0.15, respectively. What is the expected weekly profit of the store if the bottles are sold at a price of $1.80?

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Introduction To Probability Volume 2

ISBN: 9781118123331

1st Edition

Authors: Narayanaswamy Balakrishnan, Markos V. Koutras, Konstadinos G. Politis

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