In a store, the inter-occurrence times of the replenishment of stock for a particular product are i.i.d.
Question:
In a store, the inter-occurrence times of the replenishment of stock for a particular product are i.i.d. r.v.’s with a mean of five days and a standard deviation of one day. Each replenishment action costs $1500. Estimate the 0.95-quantile for the total replenishment expenses during a quarter; that is, a number q such that the probability that the total expenses will not exceed q is 0.95.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: