Question
The data below represent the distribution of daily sales for the #1 brand of cigarettes, Marlboro, at the highest-volume convenience store in Dallas, TX (data
The data below represent the distribution of daily sales for the #1 brand of cigarettes, Marlboro, at the highest-volume convenience store in Dallas, TX (data are slightly modified for this exercise). The store currently stocks 100 packs at the beginning of each day. A new inventory policy is being considered--stocking only 50 packs at the beginning of each day.
xi pi
10 0
15 0.007792
20 0.033766
25 0.088312
30 0.202597
35 0.223377
40 0.174026
45 0.114286
50 0.085714
55 0.046753
60 0.012987
65 0.007792
70 0.002597
75 0
What is the expected number of lost sales (per day) after implementing the new inventory policy?
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