5. The owner of a boat has estimated the following distribution of demand for a particular kind of boat. No. demanded 1 Probability 0.10 0.30 0.35 0.25 Each boat costs him (8 + a) (hundred) rials and...



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5. The owner of a boat has estimated the following distribution of demand for a particular kind of boat.<br>No. demanded<br>1<br>Probability<br>0.10<br>0.30 0.35 0.25<br>Each boat costs him (8 + a) (hundred) rials and he sells them for (12 + b) (hundred) rials each. Boats<br>that are left unsold at the end of the season must be disposed off for 6+ a (hundred) rials each. How<br>many should be stocked so as to maximize his expected profit? Note: a = 9 and b = 9<br>

Extracted text: 5. The owner of a boat has estimated the following distribution of demand for a particular kind of boat. No. demanded 1 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? Note: a = 9 and b = 9

Jun 11, 2022
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