5.113 A merchant stocks a certain perishable item. She knows that on any given day she will...
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5.113 A merchant stocks a certain perishable item. She knows that on any given day she will have a demand for either two, three, or four of these items with probabilities 0.1, 0.4, and 0.5, respectively. She buys the items for $1.00 each and sells them for $1.20 each.
Any that are left at the end of the day represent a total loss. How many items should the merchant stock to maximize her expected daily profit?
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Related Book For
Probability And Statistics For Engineers
ISBN: 9781133006909
5th Edition
Authors: Richard L Scheaffer, Madhuri Mulekar, James T McClave, Cecie Starr
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