Question: Please note the numbers and demand distribution may change from one question to another. All Boots is a retailer of boots. It sources a kind
Please note the numbers and demand distribution may change from one question to another.
All Boots is a retailer of boots. It sources a kind of waterproof hunting boots from an Asian
supplier before the selling season and sells them to customers during the season. Leftover boots at the end of season will be sold to an outlet mall. All Boots can also source from a vendor in the United States that can produce boots very quickly but at a higher price than All Boots Asian supplier. Hence, in addition to boots from Asia, All Boots can buy an unlimited quantity of additional boots from this American vendor after demand is know.The distribution is estimated as follows:
Suppose All Boots orders bots from the Asian supplier. What is the probability that All Boots will order from the American supplier once demand is known, ie the probability of placing a second order?
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