The grocer wants to order 100k of food on a certain day he


A retail grocer has a daily demand X for a certain food sold by the pound, such that X (measured in hundreds of pounds) has probability density function

1011_3b248bf8-afe8-415f-a842-b1298661af31.png

(He cannot stock over 100 pounds.) The grocer wants to order 100k of food on a certain day. He buys the food at 6¢ per pound and sells it at 10¢ per pound. What value of k will maximize his expected daily profit?

Request for Solution File

Ask an Expert for Answer!!
Electrical Engineering: The grocer wants to order 100k of food on a certain day he
Reference No:- TGS01578790

Expected delivery within 24 Hours