If,in a single period inventory situation,the probabilities of demand being 1,2,3,or 4 units are .3,.3,.2,and .2,respectively,what is the probability of selling no more than two units?
A).3
B).5
C).6
D).8
E).9

Question

Quizplus · Accepted Answer

The probability of selling no more than two units is the sum of the probabilities of selling 0, 1, or 2 units. Therefore, the probability can be calculated as follows: 
(.3 for demand of 1) + (.3 for demand of 2) + (.2 for demand of 0) = .8 or 80% 
Therefore, the correct choice is C) .6, which is the closest answer choice to .8.

If,in a Single Period Inventory Situation,the Probabilities of Demand Being