A company sells its products to wholesalers in batches of 1,000 units only. The daily demand for its product and the respective probabilities are given below. Demand (Units) Probability 0 0.1 1000 0.3 2000 0.4 3000 0.1 4000 0.1 a. Determine the expected daily demand. b. Assume that the company sells its product at $3.90 per unit. What is the expected daily revenue?
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A company sells its products to wholesalers in batches of 1,000 units only. The daily demand for its product and the respective probabilities are given below.
Demand (Units) |
Probability |
0 |
0.1 |
1000 |
0.3 |
2000 |
0.4 |
3000 |
0.1 |
4000 |
0.1 |
a. | Determine the expected daily demand. |
b. | Assume that the company sells its product at $3.90 per unit. What is the expected daily revenue? |
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