(Type an integer or a decimal. Do not round.) b. What is the probability that weekly demand will be greater than the number of available radios? The probability is 0.10 (Type an integer or a decimal. Do not round.) c. What is the expected weekly profit from the sale of the alarm clock radio? (Remember: There are only five clock radios available) The expected weekly profit is $ (Round to the nearest cent as needed.) d. On average, how much profit is lost each week because the radio is not available when demanded?
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Given that the probability of weekly demand being greater than the number of available radios is 0.10, we can calculate the expected profit as follows: Expected profit = (Probability of demand > available radios) * (Profit per radio) Expected profit = 0.10 * (5 Show more…
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A consumer electronics store stocks five alarm clock radios. If it has fewer than five clock radios available at the end of a week, the store restocks the item to bring the in-stock level up to five. If the weekly demand is greater than the five units in stock, the store loses sales. The radio sells for $27 and costs the store $12. The manager estimates that the probability distribution of weekly demand for the radio is as shown in the provided data table. Complete parts a through d below. a. What is the expected weekly demand for the alarm clock radio? The expected weekly demand is: (Type an integer or a decimal. Do not round.) b. What is the probability that the weekly demand will be greater than the number of available radios? The probability is: (Type an integer or a decimal. Do not round.) c. What is the expected weekly profit from the sale of the alarm clock radio? (Remember: There are only five clock radios available in any week to meet demand.) The expected weekly profit is: (Round to the nearest cent as needed.) d. On average, how much profit is lost each week because the radio is not available when demanded? The expected weekly profit lost is: (Round to the nearest cent as needed.) Data: Weekly_Demand Probability 0 0.06 1 0.08 2 0.1 3 0.19 4 0.33 5 0.14 6 0.06 7 0.04
Keondre P.
a. What is the expected weekly demand for the alarm clock radio? The expected weekly demand is (Type an integer or a decimal. Do not round.) b. What is the probability that weekly demand will be greater than the number of available radios? The probability is (Type an integer or a decimal. Do not round.) c. What is the expected weekly profit from the sale of the alarm clock radio? (Remember: There are only four clock radios available in any week to meet demand.) The expected weekly profit is (Round to the nearest cent as needed.) d. On average, how much profit is lost each week because the radio is not available when demanded? The expected weekly profit lost is (Round to the nearest cent as needed.)
Rashmi S.
The beer store sells potato chips and has does so for a long time. Over the last four years, it has observed that its weekly demand for potato chips varies quite a bit from week to week, but does not follow any seasonal or predictable pattern. The volume of potato chips is much higher than beer, and the store estimates that weekly demand can be modeled as being normally distributed with a mean of 35 bags per week, and a standard deviation of 7. Assume that the store has a given amount of inventory at the start of a week, and has no opportunity to replenish this inventory during the week. In particular for each of the question we’ll assume that the store has 34 bags of inventory at the start of the week. 1. What is the probability that it will sell all 34 bags? (rounded to three decimal places) 2. What is the probability that it has at least 2 bags of chips leftover at the end of the week? (rounded to three decimal places) 3. What is the probability that unmet demand equals or exceeds 3 bags? (rounded to three decimal places) 4. What is the expected number of bags that the store will sell? (rounded to three decimal places) 5. What is the expected number of bags in inventory at the end of the week? (rounded to three decimal places) 6. What is the expected unmet demand? (rounded to three decimal places)
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