Solved: What is the random variable, Operation Management

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What is the random variable

Assignment:

On Thursday, Amazon Fresh is going to deliver a box of groceries to Rachel Restaurant [Delivery A]. According to their contract, the promised time for delivery is 5:00AM. If the delivery arrives late, Amazon-Fresh will pay $65 penalty to Rachel Restaurant. Based on past experiences with the delivery, Amazon-Fresh estimates that this delivery has an 80% chance of arriving on time.

a. What is the mutually exclusive event in this case?

b. What is the random variable?

c. Construct a well-labeled probability distribution table for Amazon Fresh possible losses.

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