Mike plans to sell apples at the local farmers' market. He makes a net profit of $40 for every apple he sells but incurs a net loss of $10 dollars for every apple he doesn't sell. The random demanded quantity X for the apples is uniform on [0,5]. Let a be the amount of apples that he brings to sell. (If the demand meets or exceeds however many apples he has, he sells all of them. If the demand is fewer than the number of apples he has, he incurs a loss.) How many apples should Mike bring to maximize his expected earnings from the farmers' market?
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.
Mike plans to sell apples at the local farmers' market. He makes a net profit of $40 for every apple he sells but incurs a net loss of $10 dollars for every apple he doesn't sell. The random demanded quantity X for the apples is uniform on [0,5]. Let a be the amount of apples that he brings to sell. (If the demand meets or exceeds however many apples he has, he sells all of them. If the demand is fewer than the number of apples he has, he incurs a loss.) How many apples should Mike bring to maximize his expected earnings from the farmers' market?
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