Unformatted text preview: X (b) The manufacturer sells the article for a ﬁxed price of $2 . 00. He guarantees to refund the purchase money to any customer who ﬁnds the weight of his article to be less than 8 . 25 oz. His cost of production is related to the weight of the article by x/ 15 + . 35. Find the expected proﬁt per article and its standard deviation. The following problem is optional for 3500 students, mandatory for students enrolled in 5500 Problem 4 Let p i = P ( X = i ) and suppose that p 1 + p 2 + p 3 = 1. If EX = 2, what values of p 1 ,p 2 and p 3 ( a ) maximize and ( b ) minimize Var X ? 1...
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This note was uploaded on 09/22/2009 for the course ORIE 3500 taught by Professor Weber during the Summer '08 term at Cornell.
- Summer '08