The demand for a product of Gippsland industries varies greatly from month to month. Based on the past two years of data, the following probability distribution shows the company's monthly demand Unit demand 300 400 500 600 Probability 0.20 0.30 0.35 0.15 (a) If the company places monthly orders based on the expected value of the monthly demand, what should Gippsland's monthly order quantity be for this period? Assume that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or loss in a month if it places an order based on your answer to part (a) and where the actual demand for the item is 300 units? What is the standard deviation for the number of units demanded? (b) (c)

The demand for a product of Gippsland industries varies greatly from month to month. Based on the past two years of data, the following probability distribution shows the company's monthly demand Unit demand 300 400 500 600 Probability 0.20 0.30 0.35 0.15 (a) If the company places monthly orders based on the expected value of the monthly demand, what should Gippsland's monthly order quantity be for this period? Assume that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or loss in a month if it places an order based on your answer to part (a) and where the actual demand for the item is 300 units? What is the standard deviation for the number of units demanded? (b) (c)

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Description: the standard deviation of X.The demand for a product of Gippsland industries varies greatly from month to month.Based on the past two years of data, the following probability distribution shows thecompany's monthly demand2.Unit demand300400500600Pro

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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