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Prob

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Unit Demand 0 1000 2000 3000 4000 Probability 0.1 0.1 0.3 0.4 0.1 Expected Values 0 100 600 1200 400 a) Expected Value Production cost per unit Total cost of production 2300 $8.00 $18,400.00 Number of units sold Selling price Total sales 2000 $10.00 $20,000.00 b) Net profit $1,600.00 Demand Probability 0 1 2 3 4 5 6 Expected Values 0.05 0.1 0.15 0.35 0.2 0.1 0.05 0 0.1 0.3 1.05 0.8 0.5 0.3 a) Expected Value 3.05 b) Variance 2.0475 b) Standard Deviation 1.430908802 Demand Squared 0 1 4 9 16 25 36 Demand Squared * Prob 0 0.1 0.6 3.15 3.2 2.5 1.8 X 0 1 2 Sum Expected Value Probability 0.5 0.333333333 0.166666667 1 Expected Value 0 0.333333333 0.333333333 0.666666667 a) Since the sum of all of the probabilities given is equal to 1, then yes, this is a valid probability function. b) Taking the value from above, P(X=2) = 0.1667 c) Since 2 is the most that he can sell, P(X>=2) = 0.1667 d) The expected value of policies that he will sell is 0.6667 e) Variance 0.555555556 X^2 0 1 4 yes, this is a valid probability function. X^2 * Probability 0 0.333333333 0.666666667 Rate of Return 9.5 9.8 10.0 10.2 10.6 Probability 0.1 0.2 0.3 0.3 0.1 Expected Value 0.95 1.96 3 3.06 1.06 a) P(X>=10) 0.7 b) Expected Rate of Return 10.03 c) Variance 0.0801 Rate of Return^2 90.25 96.04 100 104.04 112.36 Rate of Return * P(X) 9.025 19.208 30 31.212 11.236 Number of Checks 0 1 2 3 4 5 6 7 Sum Number of Days 8 12 20 60 40 30 20 10 Probability 0.04 0.06 0.1 0 ...
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