Homework Help is Here – Start Your Trial Now!
Math
Statistics
a. What is the expected weekly demand for the alarm clock radio? b. What is the variance and standard deviation of weekly demand for the alarm clock radio? c. What is the probability that weekly demand will be greater than the number of available radios? There

a. What is the expected weekly demand for the alarm clock radio? b. What is the variance and standard deviation of weekly demand for the alarm clock radio? c. What is the probability that weekly demand will be greater than the number of available radios? There

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.4: Expected Value
Problem 1E: If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the...
See similar textbooks
icon
Related questions
Question
Question 2 A store stocks four alarm clock radios. If it has fewer than four clock radios available at the end of a week, the store restocks the item to bring the in-stock level up to four. If weekly demand is greater than the four units in stock, the store loses the sale. The radio sells for $25 and costs the store $15. The store manager estimates that the probability distribution of weekly demand for the radio is as follows: x(Weekly Demand) Probability 0 0.05 1 0.05 2 0.1 3 0.2 4 0.4 5 0.1 6 0.05 7 0.05 a. What is the expected weekly demand for the alarm clock radio? b. What is the variance and standard deviation of weekly demand for the alarm clock radio? c. What is the probability that weekly demand will be greater than the number of available radios? d. What is the expected weekly profit from the sale of the alarm clock radio? (Remember: There are only four clock radios available in any week to meet demand.) e. On average, how much profit is lost each week because the radio is not available when demanded?
Transcribed Image Text:Question 2 A store stocks four alarm clock radios. If it has fewer than four clock radios available at the end of a week, the store restocks the item to bring the in-stock level up to four. If weekly demand is greater than the four units in stock, the store loses the sale. The radio sells for $25 and costs the store $15. The store manager estimates that the probability distribution of weekly demand for the radio is as follows: x(Weekly Demand) Probability 0 0.05 1 0.05 2 0.1 3 0.2 4 0.4 5 0.1 6 0.05 7 0.05 a. What is the expected weekly demand for the alarm clock radio? b. What is the variance and standard deviation of weekly demand for the alarm clock radio? c. What is the probability that weekly demand will be greater than the number of available radios? d. What is the expected weekly profit from the sale of the alarm clock radio? (Remember: There are only four clock radios available in any week to meet demand.) e. On average, how much profit is lost each week because the radio is not available when demanded?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS