The demand D for a product in a week is a random variable taking on the values

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The demand D for a product in a week is a random variable taking on the values of –1, 0, 1 with probabilities 1/8, 5/8, and C/8, respectively. A demand of – 1 implies that an item is returned.
(a) Find C, E(D), and variance D.
(b) Find E(eD2).
(c) Sketch the CDF of the random variable D, labeling all the necessary values.
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Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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