1.Farm Grown, Inc. produces boxes of perishable goods. Each box contains a variety of vegetables and other agricultural products. Each box costs $ 10 and sells for $ 15. If there are boxes that don't sell at the end of the day, they are sold to a large food processing company for $ 3. It is known that the daily demand can be 100, 200 or 300 boxes, with probability 0.3, 0.4, and 0.3 respectively. 1.1 How many states of nature are there? 1.2 How many possible actions does Fram Grown have? 1.3 For the case where the demand and production of Farm Grown coincide in 100 boxes, what is the profit (or loss) of the company?
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.
1.Farm Grown, Inc. produces boxes of perishable goods. Each box contains a variety of vegetables and other agricultural products. Each box costs $ 10 and sells for $ 15. If there are boxes that don't sell at the end of the day, they are sold to a large food processing company for $ 3. It is known that the daily demand can be 100, 200 or 300 boxes, with probability 0.3, 0.4, and 0.3 respectively. 1.1 How many states of nature are there? 1.2 How many possible actions does Fram Grown have? 1.3 For the case where the demand and production of Farm Grown coincide in 100 boxes, what is the profit (or loss) of the company? 1.4 For In the case where the demand is 100 boxes and the Farm Grown production is 200, what is the profit (or loss) of the company? 1.5 Using the criterion of repentance (opportunity cost), how many boxes should Farm Grown buy?
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