Depending on the availability of parts, a company can manufacture 3, 4, 5, or 6 units of
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Depending on the availability of parts, a company can manufacture 3, 4, 5, or 6 units of a certain item per week with corresponding probabilities of 0.10,0.40, 0.30, and 0.20. The probabilities that there will be a weekly demand for \(0,1,2,3, \ldots\), or 8 units are, respectively, \(0.05,0.10,0.30,0.30,0.10,0.05,0.05,0.04\), and 0.01. If a unit is sold during the week that it is made, it will yield a profit of \(\$ 100\); this profit is reduced by \(\$ 20\) for each week that a unit has to be stored. Simulate the operation of this company for 50 consecutive weeks and estimate its expected weekly profit.
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Probability And Statistics For Engineers
ISBN: 9780134435688
9th Global Edition
Authors: Richard Johnson, Irwin Miller, John Freund
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