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Under an employment promotion programme, it is proposed to allow sale of iewspapers on the buses during off-peak hours. The vendor can purchase the newspapers at a special concessional rate of 25 paise per copy against the selling price of 40 paise. Any unsold copies are, however, a dead loss. A vendor has estimated the following prob- ability distribution for the number of copies demanded: Number of copies Probability : 15 16 17 18 19 20 : 0.04 0.19 0.33 0.26 0.11 0.07 How many copies should he order so that his expected profits will be maximum?

Under an employment promotion programme, it is proposed to allow sale of iewspapers on the buses during off-peak hours. The vendor can purchase the newspapers at a special concessional rate of 25 paise per copy against the selling price of 40 paise. Any unsold copies are, however, a dead loss. A vendor has estimated the following prob- ability distribution for the number of copies demanded: Number of copies Probability : 15 16 17 18 19 20 : 0.04 0.19 0.33 0.26 0.11 0.07 How many copies should he order so that his expected profits will be maximum?

MATLAB: An Introduction with Applications
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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Under an employment promotion programme, it is proposed to allow sale of iewspapers on the buses during off-peak hours. The vendor can purchase the newspapers at a special concessional rate of 25 paise per copy against the selling price of 40 paise. Any unsold copies are, however, a dead loss. A vendor has estimated the following prob- ability distribution for the number of copies demanded: Number of copies Probability : 15 16 17 18 19 20 : 0.04 0.19 0.33 0.26 0.11 0.07 How many copies should he order so that his expected profits will be maximum?
Transcribed Image Text:Under an employment promotion programme, it is proposed to allow sale of iewspapers on the buses during off-peak hours. The vendor can purchase the newspapers at a special concessional rate of 25 paise per copy against the selling price of 40 paise. Any unsold copies are, however, a dead loss. A vendor has estimated the following prob- ability distribution for the number of copies demanded: Number of copies Probability : 15 16 17 18 19 20 : 0.04 0.19 0.33 0.26 0.11 0.07 How many copies should he order so that his expected profits will be maximum?
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