03:07
Intro Stats / AP Statistics
Reconsider the inventory problem of Example 8.1, but now suppose
that the store policy is to order more aquariums if there are less
than two left in stock at the end of the week. In either case (zero
or one remaining) the store orders enough to bring the total number
of aquariums in stock back up to three.
(a) Calculate the probability that the demand for
aquariums in a given week exceeds the supply. Use the five-step
method, and model as a Markov chain in steady state.