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Unformatted text preview: 50 100 200 probability of demand: 0.4 0.3 0.3 The cost of producing each roll is $0.10. a. (15 points) What is the expected daily profit? b. (15 points) What is the standard deviation for the daily profit? 2 3. (35 points) An expensive liquid ingredient for a batch process is available from two different suppliers, A and B. Past experience has indicated that the quality variable X for each ingredient is normally distributed with the following means and standard deviations: Supplier Mean Standard deviation A 95% 1% B 94% 0.5% Suppose that a random bottle of the ingredient is selected for each supplier. What is the probability that the difference in the quality variables for the two bottles is greater than 3%? THE END...
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- Spring '06