The manager of a bakery knows that the number of chocolate cakes he can sell on any given day is a random variable with probability mass function Px(0) = 12 %3| Px(1) 12 3 Px(2) : %3D 12 4 %3D 12 2 Px(3) : Px(4) : %3D 12 Px(5) = 12 %3D He also knows that there is a profit of $1.00 on each cake that he sells and a loss (due to spoilage) of $0.50 on each cake that he does not sell. Assuming that each cake can be sold only on the day it is made, how many chocolate cakes should he bake to maximize his expected profit? |I
The manager of a bakery knows that the number of chocolate cakes he can sell on any given day is a random variable with probability mass function Px(0) = 12 %3| Px(1) 12 3 Px(2) : %3D 12 4 %3D 12 2 Px(3) : Px(4) : %3D 12 Px(5) = 12 %3D He also knows that there is a profit of $1.00 on each cake that he sells and a loss (due to spoilage) of $0.50 on each cake that he does not sell. Assuming that each cake can be sold only on the day it is made, how many chocolate cakes should he bake to maximize his expected profit? |I
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...
Related questions
Concept explainers
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.
Topic Video
Question
Transcribed Image Text:The manager of a bakery knows that the number of chocolate cakes he can sell on
any given day is a random variable with probability mass function
Px(0) =
Px(1)
Px(2)
12
Px(3)
Px(4)
Px(5)
12
He also knows that there is a profit of $1.00 on each cake that he sells and a loss
(due to spoilage) of $0.50 on each cake that he does not sell. Assuming that each
cake can be sold only on the day it is made, how many chocolate cakes should he
bake to maximize his expected profit?
احتمالات
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.Recommended textbooks for you
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON