04:50
Applied Statistics and Probability for Engineers
A biotechnology manufacturing firm can produce diagnostic test kits at a cost of $\$ 20 .$ Each kit for which there is a demand in the week of production can be sold for $\$ 100$. However, the half-life of components in the kit requires the kit to be scrapped if it is not sold in the week of production. The cost of scrapping the kit is $\$ 5 .$ The weekly demand is summarized as follows: How many kits should be produced each week to maximize the firm's mean earnings?