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
0.20
2,000
0.25
3,000
0.35
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?
What will be an ideal response?
?
| a. | 2150 |
| b. | Profit = $2800 |
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