Question: 2. [10 points] Continuous Uniform [0,d] Demand. (a) [5 points] Derive formulas (as functions of y ) for E [sales], E [shortage], E [surplus] and
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2. [10 points] Continuous Uniform [0,d] Demand. (a) [5 points] Derive formulas (as functions of y ) for E [sales], E [shortage], E [surplus] and E [profit]. Hint: Use your results from Problem 1. Remember that F(x)=dx. (b) [5 points] Derive a formula for the optimal order quantity y (the value that maximizes E [profit], where profit is given by the formula (1) in Problem 1)
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