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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
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.
In the previous section we looked at the method of undetermined coefficients for getting a particular solution to p (t) y′′ + q (t) y′ + r (t) y = g (t) .....................
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There are really three various methods for doing such integral. Method 1: This method uses a trig formula as, ∫sin(x) cos(x) dx = ½ ∫sin(2x) dx = -(1/4) cos(2x) + c
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