Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. After looking more closely at their data, Simon volunteers are able to narrow down their estimate of the demand distribution. Instead of any number

image text in transcribed
image text in transcribed
3. After looking more closely at their data, Simon volunteers are able to narrow down their estimate of the demand distribution. Instead of any number between 37 and 42 being equally likely, they estimated that at $10 a pie, the demand will be for 41 pies with 50% probability, for 40 pies with 25% probability, and for 42 pies with 25% probability. a. Sketch out an inverse cumulative distribution plot for this demand distribution. Inverse Cumulative Probability Distribution of Demand 45 44 43 42 41 40 ON 5% 10% 15% 20% 25% DON 35% 40% 45% SON 55% 60% 656 70% 75% 8ON 85K 90% 95% 100% Given this new understanding of the demand distribution, b. how many pies should they bake? c. what will be the probability that they won't satisfy all the demand? d. what will be their expected profit? e. what is the probability that they will get exactly the profit in (d)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Decision Modeling Business Analytics With Spreadsheet

Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson

4th Edition

1501515101, 978-1501515101

More Books

Students also viewed these Accounting questions

Question

A greater tendency to create winwin situations.

Answered: 1 week ago

Question

Improving creative problem-solving ability.

Answered: 1 week ago