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Suppose we are selling cups of lemonade. If the weather is good, we believe the demand D will have a Poisson distribution with mean 20.
- Suppose we are selling cups of lemonade. If the weather is good, we believe the demand D will have a Poisson distribution with mean 20. If the weather is not good, we believe the demand will be geometric with mean 5. The weather is predicted to be good with probability 6/10. Let G denote the event that the weather is good.
- (a)Express the following in symbols: the demand.
- (b)Express the following in symbols: the expected demand.
- (c)Express the following in symbols: the expected demand given that the weather is good.
- (d)Express the following in symbols: the probability that the demand is 3.
- (e)Express the following in symbols: the probability that the demand is 3 given that the weather is good.
- (f)Compute the probability that the demand is 3 given that the weather is good.
- (g)Compute the probability that the demand is 3.
- (h)Compute the expected demand given that the weather is good.
- (i)Compute the expected demand.
- (j)Your approach to computing the expected demand corresponds to an equation in Chapter 2 of Hajek. What is that equation?
- (k)Compute P{G | D = 0}.
- (l)Compute P{G | D = 1}.
- (m)Compute P{D is odd | G}.
- (n)Compute P{D is odd | Gc}.
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