5. Suppose tomorrow's demand for a particular product is D, but there are only 2 items in stock. Assume that D is a nonnegative, integer-valued random variable. If the demand exceeds the number of items in stock, the excess demand is lost. For simplicity, assume that P{D = k} = c for k = 0, 1, 2, ...,6. |3D (a) Give an expression for the number sold tomorrow. (b) Determine c. (c) What is the probability that 1 item is sold tomorrow?
5. Suppose tomorrow's demand for a particular product is D, but there are only 2 items in stock. Assume that D is a nonnegative, integer-valued random variable. If the demand exceeds the number of items in stock, the excess demand is lost. For simplicity, assume that P{D = k} = c for k = 0, 1, 2, ...,6. |3D (a) Give an expression for the number sold tomorrow. (b) Determine c. (c) What is the probability that 1 item is sold tomorrow?
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![5. Suppose tomorrow's demand for a particular product is D, but there are
only 2 items in stock. Assume that D is a nonnegative, integer-valued
random variable. If the demand exceeds the number of items in stock,
the excess demand is lost. For simplicity, assume that P{D = k} = c
for k = 0,1, 2, ..., 6.
(a) Give an expression for the number sold tomorrow.
(b) Determine c.
(c) What is the probability that 1 item is sold tomorrow?
(d) What is the probability that 2 items are sold tomorrow?
(e) What is tomorrow's expected revenue if the items are selling for
$5 each?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fefdc54e0-d2b2-42c7-8e2c-6d86bff3770f%2F20e21838-31f7-4a5c-84af-641c0d68cf85%2F3yfihb3_processed.png&w=3840&q=75)
Transcribed Image Text:5. Suppose tomorrow's demand for a particular product is D, but there are
only 2 items in stock. Assume that D is a nonnegative, integer-valued
random variable. If the demand exceeds the number of items in stock,
the excess demand is lost. For simplicity, assume that P{D = k} = c
for k = 0,1, 2, ..., 6.
(a) Give an expression for the number sold tomorrow.
(b) Determine c.
(c) What is the probability that 1 item is sold tomorrow?
(d) What is the probability that 2 items are sold tomorrow?
(e) What is tomorrow's expected revenue if the items are selling for
$5 each?
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