Explain new product should be purchased for resale

Assignment Help Basic Statistics

Reference no: EM1316216

Decision making using EMV.

You are considering adding a new food product to your store for resale. You are certain that, in a month, minimum demand for the product will be 6 units, while maximum demand will be 8 units. (Unfortunately, the new product has a one-month shelf life and is considered to be waste at the end of the month.) You will pay $60/unit for this new product while you plan to sell the product at a $40/unit profit. The estimated demand for this new product in any given month is 6 units (p=0.1). 7 units (p=0.4), and 8 units (p=0.5). Using EMV analysis, how many units of the new product should be purchased for resale?

Reference no: EM1316216

Questions Cloud

Find the probability that the adult : Show some work for each part. A diagram can be helpful. A survey of adults found the following: 65 percent of the adults drink coffee. 35 percent drink tea. 80 percent drink coffee or tea (or both). If we choose a surveyed adult at random, find t..

The equation of tangent line : The equation of tangent line.

Expected value of perfect information : Which of the following is true about the expected value of perfect information. It is the amount you would pay for any sample study.

Estimate rate of changes : Estimate rate of changes.

Explain new product should be purchased for resale : You are considering adding a new food product to your store for resale. Explain how many units of the new product should be purchased for resale.

Find out the probability distribution of blood types : Find out the probability distribution of blood types by gender in the group of 1000 individuals.The table below gives the distribution of blood types by gender in a group of 1000 individuals.

Calculation of ebit and sensitivity analysis : Calculation of EBIT and Sensitivity analysis and What is the operating cash flow for a sensitivity analysis using total fixed costs

Probability of identifying the odd sample : With a Rejection Region of 8, 9 or 10, what is the probability of a Type II error, if the job applicant has a probability of identifying the odd sample with p = 0.5?

Explain finding the impact of the transactions on cash : Explain Finding the impact of the transactions on cash and net working capital

User Account

All Pages