A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf. 1 3 4 5 6. 1 5 5 3 3 p(x) 19 19 19 19 19 19 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.] What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.) $ 4.736 What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.) $ 4.842
A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf. 1 3 4 5 6. 1 5 5 3 3 p(x) 19 19 19 19 19 19 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.] What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.) $ 4.736 What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.) $ 4.842
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Can someone please tell me why my answer is wrong??!!!
![A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf.
1
3
4
6.
1
2
5
5
3
p(x)
19
19
19
19
19
19
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.]
What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.)
$ 4.736
What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.)
$ 4.842
How many magazines should the store owner order?
O 3 magazines
O 4 magazines
Need Help?
Read It](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11ad9986-04b0-4336-8340-a3038312afe8%2F8f1fcf5e-8746-4c72-a53d-a3c50d399818%2Fci34sxd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf.
1
3
4
6.
1
2
5
5
3
p(x)
19
19
19
19
19
19
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.]
What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.)
$ 4.736
What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.)
$ 4.842
How many magazines should the store owner order?
O 3 magazines
O 4 magazines
Need Help?
Read It
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