The monthly demand, D, for a certain product manufactured by Umbrella Corporation has the following probability...
The monthly demand, D, for a certain product manufactured by Umbrella Corporation has the following probability distribution.
| d | P(D = d) |
| 2,306 | 0.20 |
| 2,256 | 0.45 |
| 6,970 | 0.35 |
The cost to make each unit of product is $1.64 plus overhead of $1,799. Thus, total cost can be written as C = 1.64*D + 1,799. Find E(C), the expected total cost per month to the nearest dollar, using the rules of expected value. Hint: you first have to find E(D).
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