34. A small market orders copies of a certain magazine for its magazine rack each week. Let...
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34. A small market orders copies of a certain magazine for its magazine rack each week. Let X demand for the magazine, with pmf x 1 2 3 4 5 6 p(x)
Suppose the store owner actually pays $1.00 for each copy of the magazine and the price to customers is $2.00. If magazines left at the end of the week have no salvage value, is it better to order three or four copies of the magazine? (Hint: For both three and four copies ordered, express net revenue as a function of demand X, and then compute the expected revenue.)
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Related Book For
Modern Mathematical Statistics With Applications
ISBN: 9780534404734
1st Edition
Authors: Jay L Devore
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