Question: title : Quantitative Methods for Business Important note: these are the value of a=1, b=8, c=7, d=0, e=2, f=0 The owner of a boat has

title : Quantitative Methods for Business

Important note: these are the value of a=1, b=8, c=7, d=0, e=2, f=0 The owner of a boat has estimated the following distribution of demand for a particular kind of boat. No. demanded 0 1 2 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)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

title : Quantitative Methods for Business Important note: these are the value of a=1, b=8, c=7, d=0, e=2, f=0 The VOX Cinema is installing a new system to enhance the quality of movies shown. Several...

title : Quantitative Methods for Business Important note: these are the value of A=1, B=8, C=7, D=0, E=2, F=0 Hafsa is planning to start a new designer cloth shop. Her problem is to decide how large...

** You can use EXCEL or any other software. ** You need to include your printout in your submissions. The layout and format of the paper should include the following sections: Title page, Abstract,...

Utilizing the text book,pages 264-278. In paragraph (1) Identify one country that has a current and excessive Trade Surplus. Identify the products that are responsible for the Trade Surplus, you may...

Utilizing the text book,pages 264-278 In paragraph (1) Identify one country that has a current and excessive Trade Surplus. Identify the products that are responsible for the Trade Surplus, you may...

SUMMARY this journal, the length of it should not be more than 2 pages, with 1.5 spacing size 12 Times New Rome. Available online at www.sciencedirect.com Journal of Empirical Finance 15 (2008) 199 -...

OPERATIONS MANAGEMENT ASSIGNMENT 6 1 Human resources, project management and operations management are all equally vital to a business's success. Each of these focuses on different areas of the...

Hi Sara, Please find my attachments for your information. Thank you Masoumeh P 3-2 P 3-2 The following information was obtained from the accounts of Lukes, Inc., as of December 31, 2012. It is...

What are the functions of the bill of lading?

Violins Stradivarius violins, made in the 1700s by a man of the same name, are worth millions of dollars. They are prized by music lovers for their uniquely rich, full sound. In September 2009, an...

You are given the following information for Tesia Power Company Abtume the compary's ras rate is 2 1 percent: Oefe: 2 1 , 0 0 0 7 percent coupon bonds outstanding. $ 1 0 0 0 par walue, 2 2 years mo...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...