Samatya supermarket is planning to order souvenir cups for the upcoming national feast. The cups cost $5 and sells for $20 each. The managers believe that the demand will be 500 cups with 20% probability, 1000 cups with 50% probability and 1500 cups with 30% probability. They plan to order 600, 1000 or 1300 cups. They have the opportunity to order 200 cups more for with a $15 per cup cost if the demand comes out as 1500 cups. The cups left on hand will be scrapped as there will be no more demand for them. Draw and solve the decision tree for this problem.
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.
Samatya supermarket is planning to order souvenir cups for the upcoming national feast. The cups cost $5 and sells for $20 each. The managers believe that the demand will be 500 cups with 20%
Step by step
Solved in 2 steps with 1 images
