A video rental store has two video cameras available for customers to rent. Historically, demand for cameras
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Question:
A video rental store has two video cameras available for customers to rent. Historically, demand for cameras has followed this distribution. The revenue per rental is $40. If a customer wants a camera and none is available, the store gives a $15 coupon for tape rental.
Demand Relative Frequency Revenue Cost
0 .35 0 0
1 .30 40 0
2 .20 80 0
3 .10 80 15
4 .05 80 30
A. What is the expected demand?
B. What is the expected revenue?
C. What is the expected cost?
D. What is the expected profit?
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
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