Mathematics, 18.06.2020 02:57 vleverett444
A new product's sales and profits are uncertain. The marketing department has predicted that sales might be as high as 10,000 units per year with a probability of 10%. The most likely value is 7000 units annually. The pessimistic value is estimated to be 5000 units annually with a probability of 20%. Manufacturing and marketing together have estimated the most likely unit profit to be $32. The pessimistic value of $24 has a probability of 0.3, and the optimistic value of $38 has a probability of 0.2. Construct a probability distribution for the annual profit. Assume that the sales and unit profits are statistically independent. (Answers: 1. Prob. 0.2, Unit Profit $24.00, 2. Prob. 0.3; Sales $7000, 3. Prob. 0.7, Unit Profit $32.00, 4. Prob. 0.5; and Sales $10,000, 5. Prob. 0.1, Unit Profit $38.00, 6. Prob. 0.2, Sales $5000
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