Suppose that you are going to sell cola at a football game and must decide in advance

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Suppose that you are going to sell cola at a football game and must decide in advance how much to order. Suppose that the demand for cola at the game, in liters, has a continuous distribution with p.d.f.f (x). Suppose that you make a profit of g cents on each liter that you sell at the game and suffer a loss of c cents on each liter that you order but do not sell. What is the optimal amount of cola for you to order so as to maximize your expected net gain?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Probability And Statistics

ISBN: 9780321500465

4th Edition

Authors: Morris H. DeGroot, Mark J. Schervish

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