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

Limits The concept of a limit is fundamental in calculus. Often, we are interested to know the behavior of f(x) as the independent variable x approaches some

Let u = sin(x). Then du = cos(x) dx. So you can now antidifferentiate e^u du. This is e^u + C = e^sin(x) + C.  Then substitute your range 0 to pi. e^sin (pi)-e^sin(0) =0-0 =0


The m&m factory produces 2,500 packs of plain m&ms each day. Represent the total number of packs of plain m&ms the factory makes each day

Q. How to plot Line Graphs? Ans. Line graphs can be useful in analyzing data. They are particularly helpful when you are interpolating or extrapolating information from y

greens function for x''''=0, x(1)=0, x''(0)+x''(1)=0 is G(t,s)= {1-s for t or equal to s

find the sum of the following series upto n terms: 1*2+2*4+3*8+4*16+.....

Steps for Radio test Assume we have the series ∑a n Define, Then, a. If L b. If L>1 the series is divergent. c. If L = 1 the series might be divergent, this i