O.J. Juice Company sells bags of oranges and cartonsof orange juice. O.J. grades oranges on a scale of 1 (poor)to 10 (excellent). O.J. now has on hand 100,000 lb of grade9 oranges and 120,000 lb of grade 6 oranges. The averagequality of oranges sold in bags must be at least 7, and theaverage quality of the oranges used to produce orange juicemust be at least 8. Each pound of oranges that is used forjuice yields a revenue of $1.50 and incurs a variable cost(consisting of labor costs, variable overhead costs, inventorycosts, and so on) of $1.05. Each pound of oranges sold inbags yields a revenue of 50¢ and incurs a variable cost of20¢. Formulate an LP to help O.J. maximize profit.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
O.J. Juice Company sells bags of oranges and cartons
of orange juice. O.J. grades oranges on a scale of 1 (poor)
to 10 (excellent). O.J. now has on hand 100,000 lb of grade
9 oranges and 120,000 lb of grade 6 oranges. The average
quality of oranges sold in bags must be at least 7, and the
average quality of the oranges used to produce orange juice
must be at least 8. Each pound of oranges that is used for
juice yields a revenue of $1.50 and incurs a variable cost
(consisting of labor costs, variable overhead costs, inventory
costs, and so on) of $1.05. Each pound of oranges sold in
bags yields a revenue of 50¢ and incurs a variable cost of
20¢. Formulate an LP to help O.J. maximize profit.
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