A vender buys magazine at the rate of Rs 10 and sells them… – BBS Business Statistics 2082 Solved

BBS Business Statistics · 2082 · Solved Question with Answer

A vender buys magazine at the rate of Rs 10 and sells them at the rate of Rs 15. The unsold magazines will be worthless. The number of copies demanded and their corresponding probabilities are given below:

Copies demanded	Probability
200	0.19
210	0.16
220	0.25
230	0.27
240	0.13

(a) Determine optimum stock level (b) Calculate maximum expected monetary value (EMV).

Solution

A vender buys magazine at the rate of Rs 10 and sells them at the rate of Rs 15. The unsold magazines will be worthless. The number of copies…

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