The demand for a product varies from month to month. Based on
the past year's data, the following probability distribution shows
MNM company's monthly demand.
x f(x)
Unit Demand Probability
0
0.10
1,000 0.10
2,000 0.30
3,000 0.40
4,000 0.10
a. Determine the expected number of units
demanded per month.
b. Each unit produced costs the company $8.00,
and is sold for $10.00. How much will the company gain or lose in a
month if they stock the expected number of units demanded, but sell
2000 units?