Homework Help is Here – Start Your Trial Now!
Math
Statistics
Problem 1 The demand for product of Carolina Industries varies greatly from month to month. The probability distribution in the following table, based on the past two years of data, shows the company's monthly demand. Unit Demand 300 400 500 600 Probability 0.20 0.30 0.35 0.15 a) What is the probability that the monthly demand is 400? What is the probability that the monthly demand is at least 400? b) If the company bases monthly orders on the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product? c) What is the standard deviation in the monthly demand? d) What is the probability that the monthly demand is within one standard deviation of its expected value? (Hint: find P(µ – o ≤ X ≤ µ + µ)) e) Assume that each unit sold generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month if it places an order based on your answer to part (b) and the actual demand for the item is 500 units? (Hint: Profit = Revenue - Cost)

Problem 1 The demand for product of Carolina Industries varies greatly from month to month. The probability distribution in the following table, based on the past two years of data, shows the company's monthly demand. Unit Demand 300 400 500 600 Probability 0.20 0.30 0.35 0.15 a) What is the probability that the monthly demand is 400? What is the probability that the monthly demand is at least 400? b) If the company bases monthly orders on the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product? c) What is the standard deviation in the monthly demand? d) What is the probability that the monthly demand is within one standard deviation of its expected value? (Hint: find P(µ – o ≤ X ≤ µ + µ)) e) Assume that each unit sold generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month if it places an order based on your answer to part (b) and the actual demand for the item is 500 units? (Hint: Profit = Revenue - Cost)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question

Can you help with question D.

Problem 1 The demand for product of Carolina Industries varies greatly from month to month. The probability distribution in the following table, based on the past two years of data, shows the company's monthly demand. Unit Demand 300 400 500 600 Probability 0.20 0.30 0.35 0.15 a) What is the probability that the monthly demand is 400? What is the probability that the monthly demand is at least 400? b) If the company bases monthly orders on the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product? c) What is the standard deviation in the monthly demand? d) What is the probability that the monthly demand is within one standard deviation of its expected value? (Hint: find P(µ – o ≤ X ≤ µ + µ)) e) Assume that each unit sold generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month if it places an order based on your answer to part (b) and the actual demand for the item is 500 units? (Hint: Profit = Revenue - Cost)
Transcribed Image Text:Problem 1 The demand for product of Carolina Industries varies greatly from month to month. The probability distribution in the following table, based on the past two years of data, shows the company's monthly demand. Unit Demand 300 400 500 600 Probability 0.20 0.30 0.35 0.15 a) What is the probability that the monthly demand is 400? What is the probability that the monthly demand is at least 400? b) If the company bases monthly orders on the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product? c) What is the standard deviation in the monthly demand? d) What is the probability that the monthly demand is within one standard deviation of its expected value? (Hint: find P(µ – o ≤ X ≤ µ + µ)) e) Assume that each unit sold generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month if it places an order based on your answer to part (b) and the actual demand for the item is 500 units? (Hint: Profit = Revenue - Cost)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS