- Hofgarten Newsagents stocks a weekly magazine which advertises local second-hand goods. Marie, the owner, can:

- buy the magazines for $15 \mathrm{c}$ each

-  sell them at the retail price of $25 \mathrm{c}$

- At the end of each week unsold magazines are obsolete and have no value.

1 Marie estimates a probability distribution for weekly demand which looks like this:

Required:

(i) The expected value of demand is ______________________ units.
(ii) If Marie is to order a fixed quantity of magazines per week, calculate how many that should be? ___________________ units.
Assume no seasonal variations in demand.

Transcribed Image Text:

Weekly demand in units Probability 10 0.20 15 0.55 20 0.25 1.00