A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with pmf x 1 2 3 4 5 6 p(x) 1/5 2/15 3/15 4/15 3/15 2/15 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.]
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with pmf
|
x |
1 |
2 |
3 |
4 |
5 |
6 |
|
p(x) |
1/5 |
2/15 |
3/15 |
4/15 |
3/15 |
2/15 |
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
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