Determine the expected number of units demanded per month

Reference no: EM13178291

The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.

x f(x)
Unit Demand Probability
0 0.1
1,000 0.1
2,000 0.3
3,000 0.4
4,000 0.1

Determine the expected number of units demanded per month.

Each unit produced costs the company $8.00, and is sold for $10.00. How much will the company gain or lose in a month if they stock the expected number of units demanded, but sell 2000 units?

Reference no: EM13178291

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