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A small market orders copies of a certain magazine for its

Probability and Statistics for Engineers and the Scientists | 9th Edition | ISBN: 9780321629111 | Authors: Ronald E. Walpole; Raymond H. Myers; Sharon L. Myers; Keying E. Ye ISBN: 9780321629111 32

Solution for problem 35E Chapter 3

Probability and Statistics for Engineers and the Scientists | 9th Edition

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Probability and Statistics for Engineers and the Scientists | 9th Edition | ISBN: 9780321629111 | Authors: Ronald E. Walpole; Raymond H. Myers; Sharon L. Myers; Keying E. Ye

Probability and Statistics for Engineers and the Scientists | 9th Edition

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Problem 35E

A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with pmf Suppose the store owner actually pays $2.00 for each copy of the magazine and the price to customers is $4.00. If magazines left at the end of the week have no salvage value, is it better to order three or four copies of the magazine? [Hint: For both three and four copies ordered, express net revenue as a function of demand X, and then compute the expected revenue.]

Step-by-Step Solution:

Answer Step 1 of 4 Let Y be the profit Let X be the demand Let K be the no. of copies order y=4x-2k if k>x y=2k if kx Step 2 of 4 x P(y) If k=3 then y y*P(y) 1 1/15 4x-2k=-2 -2/15 2 2/15 4x-2k= 2 4/15 3 3/15 2k=6 here kx 18/15 4 4/15 2k=6 24/15 5 3/15 2k=6 18/15 6 2/15 18=6 12/15 Total=74/15 If k=3, E(Y)=74/15

Step 3 of 4

Chapter 3, Problem 35E is Solved
Step 4 of 4

Textbook: Probability and Statistics for Engineers and the Scientists
Edition: 9
Author: Ronald E. Walpole; Raymond H. Myers; Sharon L. Myers; Keying E. Ye
ISBN: 9780321629111

Since the solution to 35E from 3 chapter was answered, more than 1214 students have viewed the full step-by-step answer. This full solution covers the following key subjects: Magazine, copies, Revenue, demand, week. This expansive textbook survival guide covers 18 chapters, and 1582 solutions. The answer to “A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with pmf Suppose the store owner actually pays $2.00 for each copy of the magazine and the price to customers is $4.00. If magazines left at the end of the week have no salvage value, is it better to order three or four copies of the magazine? [Hint: For both three and four copies ordered, express net revenue as a function of demand X, and then compute the expected revenue.]” is broken down into a number of easy to follow steps, and 92 words. The full step-by-step solution to problem: 35E from chapter: 3 was answered by , our top Statistics solution expert on 05/06/17, 06:21PM. Probability and Statistics for Engineers and the Scientists was written by and is associated to the ISBN: 9780321629111. This textbook survival guide was created for the textbook: Probability and Statistics for Engineers and the Scientists, edition: 9.

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