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) none of these

Question

Quizplus · Accepted Answer

To find the probability of selling no more than two units, we need to add up the probabilities of selling 0, 1, or 2 units. The probability of selling 0 units is (1-0.3-0.3-0.2-0.2) = 0.0, the probability of selling 1 unit is 0.3, and the probability of selling 2 units is 0.3. Therefore, the probability of selling no more than two units is 0.0+0.3+0.3 = 0.6. Thus, the correct answer is C), .6.

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