Assignment 6 solution

Assignment 6 solution - THE UNIVERSITY OF HONG KONG...

This preview shows pages 1–4. Sign up to view the full content.

THE UNIVERSITY OF HONG KONG DEPARTMENT OF STATISTICS AND ACTUARIAL SCIENCE STAT0301 Elementary Statistical Methods Semester 1 2009/2010 ASSIGNMENT 6 SOLUTIONS Q1 . The profits table: Demand\stock 250 350 450 prob 250 (\$20less\$12)x250= \$2000 (\$8x250)less(\$12x100)= \$800 (\$8x250)less(\$12x200)= -\$400 0.2 350 \$8x250= \$2000 \$8x350= \$2800 (\$8x350)less(\$12x100)= \$1600 0.4 450 \$8x250= \$2000 \$8x350= \$2800 \$8x450= \$3600 0.4 Expected profit \$2000x(0.2+0.4+0.4)= \$2000 \$800x0.2+\$2800x(0.4+0.4)= \$2400 (minus\$400x0.2)+(\$1600x0.4)+(\$3 600x0.4)= \$2000 tot= 1 The merchant should stock 350 items as to maximize his expected daily profit. The maximum expected profit is \$2400.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Q2. Group Male(M) Female(F) Drinker(D) 30 20 Smoker(S) 19 5 Both(B) 8 0 Otherwise(O) 49 35 total F=60 D S O= 35 total M=90 D S O= 49
(a) Because 150 24 150 5 19 ) ( and 150 50 150 20 30 P(D) , 150 8 ) ( = + = = + = = S P S D P and ) ( P(D) ) ( S P S D P = The events of this member being a drinker and being a smoker are independent. (b)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/14/2010 for the course STAT 0301 taught by Professor Gabriell during the Spring '09 term at HKU.

Page1 / 9

Assignment 6 solution - THE UNIVERSITY OF HONG KONG...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online