Lab 5 Problem:

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

X = demand for the magazine, with pmf

Suppose the store owner actually pays $1.00 for each copy of the magazine and the price to customer is $2.00. If magazines left at the end of the week has no salvage value, is it better to order 3 or 4 copies of the magazine? [Hint: For both 3 and 4 copies ordered, express net revenue as function of demand X, and then compute the expected revenue.]

Price: $12.58

Solution: The downloadable solution consists of 10 pages, 258 words and 9 charts.
Deliverable: Word Document