3.6 Binomial probabilities 3.6.1 Binomial probabilities and random variables.
Binomial probabilities occur when we repeatedly do something that has two possible outcomes and we count the number of tim
3.5 Machine Replacement
This section looks at machine replacement problems which are another type of stochastic optimization
problems. In the first part we consider the concepts involved while in the
3.7 Continuous probability.
So far we have been considering examples where the outcomes form a finite or countably infinite set. In
many situations it is more natural to model a situation where the ou
3.4 Single period inventory
We buy some item wholesale and sell it retail. The demand for the item varies, so we treat it a random variable.
We want to know how many to buy wholesale so as to maximize
Probability Models
3.1 Probability concepts
This section is an introduction to some of the basic concepts of probability. Let's begin by considering
what we mean by probability.
3.1.1 Probabilities of