The revenue generated by a food stand can be modeled by a Pareto distribution with a =2 and0 = 400. Total cost is 200 regardless of the amount of revenue generated.Calculate the expected profit of the food stand if the food stand is profitable.A100200400б00E800

Pareto distribution is that kind of distribution of a random variable which is heavy tailed and…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The revenue generated by a food stand can be modeled by a Pareto distribution with a = 2 and 0 = 400. Total cost is 200 regardless of the amount of revenue generated. Calculate the expected profit of the food stand if the food stand is profitable. A 100 200 400 600 E 800