What is the optimal amount of cola

Reference no: EM131830462

Suppose that you are going to sell cola at a football game and must decide in advance how much to order. Suppose that the demand for cola at the game, in liters, has a continuous distribution with p.d.f. I(x). Suppose that you make a profit of g cents on each liter that you sell at the game and suffer a loss of c cents on each liter that you order but do not sell What is the optimal amount of cola for you to order so as to maximize your expected net gain?

Reference no: EM131830462

Questions Cloud

How john mcwhorter debunks ‘the myth of standard english : How does he construct his argument around the analogy of the ‘lava lamp' and the ‘four levels of language mixture'?

Intersection during the weekend : What is the probability that there will be at least three accidents at the intersection during the weekend?

Rations would be higher or lower than normally expected : If a business is overtrading, do you think the following rations would be higher or lower than normally expected?

Prepare journal entries to record the amortization expense : Prepare journal entries to record the transactions. Prepare journal entries to record the 2018 amortization expense for intangible assets.

What is the optimal amount of cola : What is the optimal amount of cola for you to order so as to maximize your expected net gain?

Bank offer the couple with these requirements : What size loan will the bank offer the couple with these requirements?

How would you modify the hello printer program : How would you modify the Hello Printer program to print the word "Hello" vertically? What does the following set of statements print?

Minimize your expected cost : What is the optimal number of hours 10 wait before you return for inspection in order to minimize your expected cost?

Corporate governance and ethics in financial decision-making : Explain the role of corporate governance and ethics in financial decision-making.

User Account

All Pages