Question: Given: a=4, b=4, c=8, d=8, e=1, f=9 Please type in the answer 5. The owner of a boat has estimated the following distribution of demand

Given: a=4, b=4, c=8, d=8, e=1, f=9 Please type

Given: a=4, b=4, c=8, d=8, e=1, f=9 Please type in the answer

5. The owner of a boat has estimated the following distribution of demand for a particular kind of boat. No. demanded 0 1 2 3 3 Probability 0.10 0.30 0.35 0.25 Each boat costs him (8 + a) (hundred) rials and he sells them for (12 + b) (hundred) rials each. Boats that are left unsold at the end of the season must be disposed off for 6 + a (hundred) rials each. How many should be stocked so as to maximize his expected profit? (20 marks)

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