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The parts manager for a large Jeep dealer starts each month with 4 replacement transfer cases on stock. Past experience has indicated that the monthly
The parts manager for a large Jeep dealer starts each month with 4 replacement transfer cases on stock. Past experience has indicated that the monthly demand for transfer cases, D, is given by: P(D=0) = .20, P(D=1)=.45, P(D=2) = .25, P(D=3) = .08, and P(D=4) = .02.
What is the expected number of transfer cases that will be left in stock at the end of each month? (Round your answer to 2 decimal places).
a. 2.15
b. 1.27
c. 2.53
d. 0.00
e. 2.73
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