A company sells its products to wholesalers in batches of 1,000 units only. The daily demand for its product and the respective probabilities are given below.
$\begin{array}{cc}\text { Demand Units) }&\text { Probability }\
0 & 0.2 \
1000 & 0.2 \
2000 & 0.3 \
3000 & 0.2 \
4000 & 0.1
\end{array}$
a. Determine the expected daily demand.
b. Assume that the company sells its product at $3.75 per unit. What is the expected daily revenue?

Question

A company sells its products to wholesalers in batches of 1,000 units only. The daily demand for its product and the respective probabilities are given below.
 $\begin{array}{cc}\text { Demand Units) }&\text { Probability }\
0 & 0.2 \
1000 & 0.2 \
2000 & 0.3 \
3000 & 0.2 \
4000 & 0.1
\end{array}$ 
a. Determine the expected daily demand.
b. Assume that the company sells its product at $3.75 per unit. What is the expected daily revenue?

Quizplus · Accepted Answer

The Answer of A company sells its products to wholesalers in batches of 1,000 units only. The daily demand for its product and the respective probabilities are given below.
 $\begin{array}{cc}\text { Demand Units) }&\text { Probability }\
0 & 0.2 \
1000 & 0.2 \
2000 & 0.3 \
3000 & 0.2 \
4000 & 0.1
\end{array}$ 
a. Determine the expected daily demand.
b. Assume that the company sells its product at $3.75 per unit. What is the expected daily revenue?

A Company Sells Its Products to Wholesalers in Batches of 1,000