The distribution company places its orders based on the expected value of the monthly demand. Each liter demanded generates an income of 70 pesos and each liter ordered costs 40 pesos. a) Find on average the company's profits in a month where the monthly demand was 3,000 liters. b) Find an interval around the mean that contains the monthly demand for 85% of the months. c) Find an interval around the mean that contains the firm's profits in 90% of the months.
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.
The distribution company places its orders based on the
a) Find on average the company's profits in a month where the monthly demand was 3,000 liters.
b) Find an interval around the mean that contains the monthly demand for 85% of the months.
c) Find an interval around the mean that contains the firm's profits in 90% of the months.
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