The demand for a product varies from month to month Based on the past year 's data, the following probability distribution shows MNM company 's monthly demand x f ( x ) Unit Demand Probability 0 10 1,000 10 2,000 30 3,000 40 4,000 10 a Determine the expected number of units demanded per month b Eac...

The Answer is in the image, click to view ...

The demand for a product varies from month to month. Based on the past year's data, the

Fantastic news! We've Found the answer you've been seeking!

Question:

The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.

x	f(x)
Unit Demand	Probability
0	.10
1,000	.10
2,000	.30
3,000	.40
4,000	.10

a. Determine the expected number of units demanded per month.
b. Each unit produced cost the company $8.00, and is sold for $10.00. How much will the company gain or lose in a month if they stock the expected number of units demanded, but sell 2000 units?