Question
A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 9000 units per year
A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 9000 units per year with a probability of 15%. The most likely value is 6000 units annually. The pessimistic value is estimated to be 3500 units annually with a probability of 25%. Manufacturing and marketing together have estimated the most likely unit profit to be $33. The pessimistic value of $26 has a probability of 0.25, and the optimistic value of $37 has a probability of 0.3. Construct the probability distributions for sales and unit profits.
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
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