Question

The Radnor orders 250 copies of New York Times Daily. Primarily due to weather conditions, the demand for newspapers varies form day to day. The probability distribution of the demand for newspapers is as follows:

# of newspapers 150 175 200 225 250

Relative Frequency 0.1 0.3 0.3 0.2 0.1

They makes a 15 cents profit on every paper sold, but, it loses 10 cents on every paper unsold by the end of the day. Use 10 days of simulated results in a spreadsheet to determine whether they should order 200, 225, or 250 papers per day. What is the average daily profit they can anticipate based on your recommendation?

Answer 1

SolutorDe mand corulatin fregueney fveuency O.1 0.4 145 0-3 a'2 3 0.3 125 to cents , Lossl) Protit (P): I cents 15 as cumulative revency Iバ+10 So take ukter He shal d rder o0 news pDper lies betweer 0.4 d0.7 Valee 0 7 1500 cents Average dils Proft doo Xigx7-200 Xlox-3