Unformatted text preview: 1) Suppose it starts with full reserves at the beginning of the ﬁrst month (after restocking). What is the expected amount of water it can sell as surplus after 3 months? 2) Under that scheme, what is the probability that the company loses its licence at some point in the future? What is the probability it does so in the ﬁrst 5 months? 3) Suppose that when the company is not able to meet demands, it can buy water from another supplier and so it is always able to meet demands. What is the probability it had to buy some water from the other supplier in the ﬁrst 5 months? In the longrun, what is the average MG/month it buys, and what average number does it sells to this other supplier?...
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 Spring '09
 Following, Orange County, California, MG Cars, Southern California, Mg 3, ORANGE COUNTY

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