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?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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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?
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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