A small market orders copies of a certain magazine for its magazine rack each week ...

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A small market orders copies of a certain magazine for its magazine rack each week. Let X=X= demand for the magazine, with pmf
 

x p(x)

1 1/15

2 2/15

3 3/15

4 4/15

5 3/15

6 2/15

 

Suppose the store owner actually pays $ 1.25 for each copy of the magazine and the price to customers is $ 3.75. If magazines left at the end of the week have no salvage value, calculate the expected profit.

 

    • 8 years ago
    Expected number of magazines sold = ∑x*P(x) = 3.8 ...
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      Asmallmarketorderscopiesofacertainmagazineforitsmagazinerackeachweek.doc