For a randomly selected day, let X represent the difference between the number of items in stock and demand for a specific  product  your company sells When X is zero, the supply matches the demand. Negative and positive X values indicate under-stocked and overstocked days, respectively.  The pmf for X is: x -2 -1 0 1 2 p(x) .10 .15 .45 .10 .20 a)  Find the probability you are under-stocked on a given day b) Management wants supply to equal demand (exactly) on more than 50% of the days. Is your company meeting that challenge? Explain. c) Find the expected difference between the number of items in stock and the demand for the product.

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.4: Expected Value
Problem 20E
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For a randomly selected day, let X represent the difference between the number of items in stock and demand for a specific  product  your company sells When X is zero, the supply matches the demand. Negative and positive X values indicate under-stocked and overstocked days, respectively. 

The pmf for X is:

x -2 -1 0 1 2
p(x) .10 .15 .45 .10 .20

a)  Find the probability you are under-stocked on a given day

b) Management wants supply to equal demand (exactly) on more than 50% of the days. Is your company meeting that challenge? Explain.

c) Find the expected difference between the number of items in stock and the demand for the product.

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