What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.) What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.) How many magazines should the store owner order? O 3 magazines O 4 magazines
What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.) What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.) How many magazines should the store owner order? O 3 magazines O 4 magazines
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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![A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf.
X
p(x)
1
2 3
5
18
1
2
18 18
4
5
6
5
2
3
18 18 18
Suppose the store owner actually pays $2.00 for each copy of the magazine and the price to customers is $4.00. If magazines left at the end of the week have no salvage value, is it better to order three or four
copies of the magazine? [Hint: For both three and four copies ordered, express net revenue as a function of demand X, and then compute the expected revenue.]
What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.)
$
What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.)
$
How many magazines should the store owner order?
O 3 magazines
O 4 magazines](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8eaaea92-e247-4966-90e2-8af37fd7e5c3%2Ff6ec3d8b-a0a8-484f-8130-49f039fc5af4%2F6nbv3q_processed.png&w=3840&q=75)
Transcribed Image Text:A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf.
X
p(x)
1
2 3
5
18
1
2
18 18
4
5
6
5
2
3
18 18 18
Suppose the store owner actually pays $2.00 for each copy of the magazine and the price to customers is $4.00. If magazines left at the end of the week have no salvage value, is it better to order three or four
copies of the magazine? [Hint: For both three and four copies ordered, express net revenue as a function of demand X, and then compute the expected revenue.]
What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.)
$
What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.)
$
How many magazines should the store owner order?
O 3 magazines
O 4 magazines
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