Question
Any help with below question greatly appreciated Congratulations! You have inherited an ice cream truck for the summer of 2022. You will be selling ice
Any help with below question greatly appreciated
Congratulations! You have inherited an ice cream truck for the summer of 2022. You will be selling ice cream from the truck every day that summer: 101 days in total, from Memorial Day weekend until Labor Day weekend. This problem will step you through projecting how much ice cream you expect to sell (as well as how much revenue you expect to make) during the summer.
a) Ice cream sales are known to be very dependent on weather. Suppose that for any particular day, the weather is either rainy or sunny; on average, one-third of the days are rainy and two-thirds of the days are sunny. Compute the expected number of sunny days in Summer 2022 and the probability of there being more rainy days than sunny days in Summer 2022. You may assume that the weather is independent between days.
b) It is more realistic to think that tomorrow's weather depends on today's weather (for all days throughout the summer). Suppose that if it is sunny today, there is an 80% chance that tomorrow will also be sunny; however, if it is rainy today, there is only a 30% chance that tomorrow will be sunny. Additionally, suppose that the weather on 'Day 0' (i.e., the day before your ice cream truck opens) is known to be sunny.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started