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.
a.Determine the expected number of units demanded per month.
b.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?

Question

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.  
a.Determine the expected number of units demanded per month.
b.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?

Quizplus · Accepted Answer

The Answer of 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.  
a.Determine the expected number of units demanded per month.
b.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?

The Demand for a Product Varies from Month to Month