Question: The demand for a product of Carolina Industries varies greatly from month to month . Based on the past 2 years of data, the following probability distribution shows the company's monthly demand.

unit demand probability

300 0.20

400 0.30

500 0.35

600 0.15

1. If the company places monthly orders equal to the expected value o the monthly demand, what should Carolinas monthly order quantity be for the product?
2. Assumes that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month if it places an order based on your answer to part (a) and the actual demand for the item is 300 units?
3. What are the variance and the standard deviation for the number of units demanded?

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