Question: The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.

x f( x )

Unit Demand Probability

0 0.10

1,000 0.10

2,000 0.30

3,000 0.40

4,000 0.10

1. Determine the expected number of units demanded per month.
2. Each unit produced costs the company $8.00, and is sold for $10.00. How much will the company gain or lose in a month if they stock the expected number of units demanded, but sell 2000 units?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document