Calculate the average return, Mathematics

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.

Posted Date: 3/11/2013 3:33:11 AM | Location : United States







Related Discussions:- Calculate the average return, Assignment Help, Ask Question on Calculate the average return, Get Answer, Expert's Help, Calculate the average return Discussions

Write discussion on Calculate the average return
Your posts are moderated
Related Questions
School run known to possess normal distribution with mean 440 sec & SD 60 sec. What is probability that randomly chosen boy can run this race in 302 sec.

1. For a function f : Z → Z, let R be the relation on Z given by xRy iff f(x) = f(y). (a) Prove that R is an equivalence relation on Z. (b) If for every x ? Z, the equivalenc

how do I change this ratio to a fraction

Show that 571 is a prime number. Ans:    Let x=571⇒√x=√571 Now 571 lies between the perfect squares of  (23)2 and (24)2 Prime numbers less than 24 are 2,3,5,7,11,13,17,1

I need help on how to do real word problm with unit rates.


The positive value of k for which x 2 +Kx +64 = 0 & x 2 - 8x + k = 0 will have real roots . Ans: x 2 + K x + 64 = 0 ⇒  b 2 -4ac > 0 K 2 - 256 > 0 K

Evaluate the volume of a ball whose radius is 4 inches? Round to the nearest inch. (π = 3.14) a. 201 in 3 b. 268 in 3 c. 804 in 3 d. 33 in 3 b. The volume of a

Question: All rates should be calculated to 3 decimal places in % (e.g. 1.234%), the discount factors to 5 decimal places (e.g. 0.98765), and the bond prices to 3 decimal place

(a) Given a norm jj jj on Rn, express the closed ball in Rn of radius r with center c as a set. (b) Given a set A and a vector v, all contained in Rn, express the translate of A by