The orders received for grain by a farmer add up to X
Chapter , Problem 2(choose chapter or problem)
The orders received for grain by a farmer add up to X tons, where X is a continuous random variable uniformly distributed over the interval (4, 7). Every ton of grain sold brings a profit of a, and every ton that is not sold is destroyed at a loss of a/3. How many tons of grain should the farmer produce to maximize his expected profit? Hint: Let Y (t) be the profit if the farmer produces t tons of grain. Then E 4 Y (t)5 = E 8 aX a 3 (t X)9 P (X < t) + E(at)P (X t).
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer