Question: The daily demand X for a particular tool at an equipment rental company is such that P(X = k) = for k = 1,

The daily demand X for a particular tool at an equipment rental

The daily demand X for a particular tool at an equipment rental company is such that P(X = k) = for k = 1, 2, 3, 4. It costs the company $2 per day to store one tool. The daily rental fee charged by the company is $6 per tool. How many tools should the company store in order to maximize its profit?

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ANSWER Let Y be the number of tools the company keeps Profit per day 6 2 Supply ... View full answer

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