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Can someone please help me with part D and E. With full working out, I do not understand how to find these

answers. I have completed the other parts already. Thankyou!


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71815834_701768076974564_7688403304254013440_n.jpg

Wally runs a fruit & vege stall - Wally's VegeRama - at the local Sunday market. He can buy watermelons from his
supplier for $5 each. He can sell watermelons for $10 each. On any particular Sunday, demand for watermelons
follows a Poisson distribution with mean 5. Any watermelons that are not sold on Sunday go bad before the next
weekend. Wally's current policy is to stock 6 watermelons.
Fill in the table below (some entries have been completed for you)
Watermelons sold
Probability
Profit/Loss ($)
0
-30
1
2
3
0.1404
4
5
6
(4 marks)
What is the probability that Wally will make a loss?
(2 marks)
What is Wally's expected profit? What is the variance of the profit?
(4 marks)
d) How many watermelons should Wally stock to maximise his expected profit?
(4 marks)
e) How many watermelons should Wally stock if he wants the probability of making a loss to be less than 10%?
(3 marks)
[Note: It would be a good idea to use Excel to help with calculations for this question]

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