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

Illustration of simpson rule, By using n = 4 and all three rules to approxi...

By using n = 4 and all three rules to approximate the value of the following integral. Solution Very firstly, for reference purposes, Maple provides the following valu

Hexagon, how many sides does a regular hexagon have?

how many sides does a regular hexagon have?

Net Present Value, A business has the opportunity to expand by purchasing ...

A business has the opportunity to expand by purchasing a machine at a cost of £80,000. The machine has an estimated life of 5 years and is projected to generate a cashflow of £20,0

Types of series - telescoping series, Telescoping Series  It's now tim...

Telescoping Series  It's now time to look at the telescoping series.  In this section we are going to look at a series that is termed a telescoping series.  The name in this c

Application of derivatives, the base b of a triangle increases at the rate ...

the base b of a triangle increases at the rate of 2cm per second, and height h decreases at the rate of 1/2 cm per second. Find rate of change of its area when the base and height

Determine the length of the field, A rectangular field is to be fenced in c...

A rectangular field is to be fenced in completely. The width is given as 22 yd and the total area is 990 yd 2 . Determine the length of the field? a. 31 yd b. 45 yd c. 968

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