# Question

The demand D for a product in a week is a random variable taking on the values of –1, 0, 1 with probabilities 1/8, 5/8, and C/8, respectively. A demand of – 1 implies that an item is returned.

(a) Find C, E(D), and variance D.

(b) Find E(eD2).

(c) Sketch the CDF of the random variable D, labeling all the necessary values.

(a) Find C, E(D), and variance D.

(b) Find E(eD2).

(c) Sketch the CDF of the random variable D, labeling all the necessary values.

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