Calculate the average return, Mathematics

Assignment Help:

A department store faces a decision for a seasonal product for which demand can be high, medium or low. The purchaser can order 1, 2 or 3 lots of this product before the season begins but cannot reorder later. Profit projections (in thousands of euro) are shown below 

1840_Calculate the average return.png

1. If the probabilities are 0.3 for high, 0.3 for medium and 0.4 for low, what is the recommended order quantity? Calculate the expected return based on these values.

2. Simulate twenty seasons and identify the recommended order quantity from this simulation.

3. Calculate the average return based on the simulated demand and compare your result with the expected return.


Related Discussions:- Calculate the average return

Measurement, into how many smaller part is each centimeter divided

into how many smaller part is each centimeter divided

Exponential smoothing, Exponential smoothing It is a weighted moving a...

Exponential smoothing It is a weighted moving average technique, this is described by: New forecast = Old forecast + a (Latest Observation - Old forecast) Whereas a = Sm

Substitution rule, Substitution Rule ∫ f ( g ( x )) g′ ( x ) dx = ∫ f (...

Substitution Rule ∫ f ( g ( x )) g′ ( x ) dx = ∫ f (u ) du,     where, u = g ( x ) we can't do the following integrals through general rule. This looks considerably

What are whole numbers, Q. What are Whole numbers? The set of whole num...

Q. What are Whole numbers? The set of whole numbers is the set of natural numbers with the zero thrown in: 0,1,2,3,4,... Hint: Some people remember that the whole numbers

Seqence and seies, If the M-th term of an Ap is n andn-th term M.find the p...

If the M-th term of an Ap is n andn-th term M.find the p-th term

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd