The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.xUnit Demandf(x)Probability00.101,0000.152,0000.303,0000.304,0000.15a. Determine the expected number of units demanded per month.b. Each unit produced costs the company $7.00 and is sold for $10.00. How much will the company gain or lose in a month if they stock the expected number of units demanded, but sell 2,000 units?

Expected value= Σx*p(x) =(0*0.10+1000*0.15+2000*0.30+3000*0.30+4000*0.15) =2250 units.

Answered: The demand for a product varies from…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.

x Unit Demand	f(x) Probability
0	0.10
1,000	0.15
2,000	0.30
3,000	0.30
4,000	0.15

a. Determine the expected number of units demanded per month.

b. Each unit produced costs the company $7.00 and is sold for $10.00. How much will the company gain or lose in a month if they stock the expected number of units demanded, but sell 2,000 units?

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