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

a. Determine the expected number of units demanded per month.

b. 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?