The Modern Gift Shop prints its own greeting cards. Suppose that the historical record on demand fora Valentine's Day card shows that the demand for the card is governed by the following discreterandom variable:Demand10,00020,00040,00060,000Probability0.100.350.30.25The greeting card sells for $4.00, and the variable cost of producing each card is $1.50, andfixed cost for printing every 100 cards is $15. Leftover cards must be disposed of at a price of$0.20 per card. How many cards should be printed?

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Answered: The Modern Gift Shop prints its own…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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TenTen Company manufactures video recorders. It is so certain of its quality control that it is offering a complete replacement warranty if the set fails within two years. Based upon compiled data, the company has a need that only 1% of its recorders fail during the first year and 5% fail during the second year. The warranty does not cover replaced recorders. a) Formulate this problem as a Markov chain and determine the transition matrix. b) Find the probability that the manufacturer will have to honor the warranty.
The purpose of this assignment is to know how to apply normal probability distribution concepts to a real business case. The case study starts under Unit 4. and Unit 4.1 is the continuation. Describe a normal probability distribution that can be used to approximate the demand distribution. Sketch the distribution and show its mean and standard deviation. Compute the probability of a stock-out for the order quantities suggested by members of management team.
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The table below gives a discrete probability distribution. x Pr{X= x} 2 0.3766 8 0.2546 14 0.1728 20 0.1168 26 0 Calculate the theoretically exact mean, u , variance, sigma^2 , and standard deviation,sigma , for the distribution. Summary metrics: Enter your answer as a comma separated list to four decimal places, e.g. 0.1234, 0.2324, 0.4567, etc.
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