B-1. As a side business, Mr Happy, keeps a fleet of luxury limousines that he rents out to afew individual clients. Each client needs at most 1 limo. The demand per week (i.e., the totalnumber of customers per week) for Mr Happy's limos has the following probabilitydistribution:Demand/Week 0124Probability0.050.20.50.20.05(a) What is the expected value and the variance of the demand per week?(b) Suppose Mr. Happy has only 3 limos. It costs Mr. Happy £3,000 per week to maintaineach limousine and his rental price per limo per week is £4,000. What is his expected weeklyprofit?(c) What is the probability that Mr. Happy makes a profit in a randomly chosen week?(d) Now suppose that you want to enter this business with the same demand distribution asMr. Happy. You have to decide how many limos you want to own to maximize yourexpected profit. The cost of maintaining each limo and the rental price is the same as Mr.Happy. How many limos should you own?

"Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Answered: B-1. As a side business, Mr Happy,…

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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at the bank of california, past data show that 8% of all credit card holders default at some time in their lives. on recent day, this bank issued 12 credit cards to new customers. find the probability that of these 12 customers, eventually a. less than 10 will default b. between 4 to 6 will default
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