Under an employment promotion programme, it is proposed to allow sales of newspapers on the buses during off- peak hours. The vendor can purchase the newspaper at a (NN)% special discounted rate per copy against the selling price of one Rial. Any unsold copies are, however a dead loss. A vendor has estimated the following probability distribution for the number of copies demanded. (Replace NN as per the instruction given above) No of copies demanded 20 21 22 23 24 25 26 27 Probability 0.1 0.12 0.15 0.17 0.17 0.2 0.06 0.03 How many copies should he order so that his expected profit will be maximum?
Under an employment promotion programme, it is proposed to allow sales of newspapers on the buses during off- peak hours. The vendor can purchase the newspaper at a (NN)% special discounted rate per copy against the selling price of one Rial. Any unsold copies are, however a dead loss. A vendor has estimated the following probability distribution for the number of copies demanded. (Replace NN as per the instruction given above) No of copies demanded 20 21 22 23 24 25 26 27 Probability 0.1 0.12 0.15 0.17 0.17 0.2 0.06 0.03 How many copies should he order so that his expected profit will be maximum?
Chapter8: Sequences, Series,and Probability
Section: Chapter Questions
Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...
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Transcribed Image Text:Under an employment promotion programme, it is proposed to allow sales of newspapers on the buses during off-
peak hours. The vendor can purchase the newspaper at a (NN)% special discounted rate per copy against the selling
price of one Rial. Any unsold copies are, however a dead loss. A vendor has estimated the following probability
distribution for the number of copies demanded. (Replace NN as per the instruction given above)
No of copies demanded 20 21 22 23 24 25 26 27
Probability
0.1 0.12 0.15 0.17 0.17 0.2 0.06 0.03
How many copies should he order so that his expected profit will be maximum?
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