Vendor sells newspapers and tries to maximize profits

Reference no: EM131103989

A news vendor sells newspapers and tries to maximize profits. The number of papers sold each day is a random variable. However, analysis of the past month's data shows the distribution of daily demand in Table 16. A paper costs the vendor 20¢. The vendor sells the paper for 30¢. Any unsold papers are returned to the publisher for a credit of 10¢. Any unsatisfied demand is estimated to cost 10¢ in goodwill and lost profit. If the policy is to order a quantity equal to the preceding day's demand, determine the average daily profit of the news vendor by simulating this system. Assume that the demand for day 0 is equal to 32.

Reference no: EM131103989

Questions Cloud

Create a main program that accept as command line parameter : Create a main program (C or C++) in Linux that will accept (as a command line parameter) a number of seconds that the main process is to run, as well as a number of work processes to be created. The function of the main program will be to create a nu..

Estimate the average number of cigarettes smoked per person : Use the regression line to estimate the average number of cigarettes smoked per person in 2001, to the nearest integer. Show some work. In what year (to the nearest year) does the regression line estimate an average number of cigarettes smoked per p..

How would you go about deciding whether person : How would you go about deciding whether person A or person B gets more personal benefit from each of the following:

Which likely to be nearly perfect complements explain : Which of the pairs of goods above is likely to be nearly perfect substitutes and which likely to be nearly perfect complements? Explain.

Vendor sells newspapers and tries to maximize profits : A news vendor sells newspapers and tries to maximize profits. The number of papers sold each day is a random variable. However, analysis of the past month's data shows the distribution of daily demand in Table 16. A paper costs the vendor 20¢. The..

Absolute impoverishment of the working class : Define and discuss the law of the absolute impoverishment of the working class. Does it apply today?

What type of slope do you think an indifference curve : what type of slope do you think an indifference curve would have? Why?

Industrial production in general : Explain any five key factors affecting the industrial production in general. Do these factors matter in case of UAE as well? Justify your argument.

Determine the break points and ranges : Integrative-WACC, WMCC, and IOS Cartwell Products has compiled the data shown in the following table for the current costs of its three basic sources of capital-long-term debt, preferred stock, and common stock equity-for various ranges of new fi..

User Account

All Pages