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

Linear equation, The ratio between the length and breadth of a rectangular ...

The ratio between the length and breadth of a rectangular field is 11:7. The cost of fencing it is Rs. 75,000. Find the dimensions of the field

Find the probability distribution of x, If a pair of dice is thrown and X d...

If a pair of dice is thrown and X denotes the sum of the numbers on them. Find the probability distribution of X.Also find the expectation of X.     SOLUTION:    In a singl

Loan amortisation problem, On 30 June 2012 Bill purchase a home by taking o...

On 30 June 2012 Bill purchase a home by taking out a 30 year mortgage of $600,000 at 6% interest per annum, compounded months. Repayments are made at the end of each month. (a) Cal

Hierarchical structures-how mathematical ideas grow, Hierarchical Structure...

Hierarchical Structures :  As the abstractions from concrete objects and materials become more and more general, they represent wider and wider ideas. If we put down each step of

Complex fractions, A small airplane used 5and2over3 gallons of fuel to fly ...

A small airplane used 5and2over3 gallons of fuel to fly a 2 hour trip.how many gallons were used each hour

Find the straight distance between a and b, There is a staircase as shown i...

There is a staircase as shown in figure connecting points A and B. Measurements of steps are marked in the figure. Find the straight distance between A and B. (Ans:10) A ns

Power of x, (x+1/x)^2=3 then value of x^72+x^66+x^54+x^36+x^24+x^6+1 is

(x+1/x)^2=3 then value of x^72+x^66+x^54+x^36+x^24+x^6+1 is

VAM, applications of VAM.

applications of VAM.

Evaluate the measure of the smallest angle, The calculation of the angles o...

The calculation of the angles of a triangle are shown by 2x + 15, x + 20 and 3x + 25. Evaluate the measure of the smallest angle within the triangle. a. 40° b. 85° c. 25°

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