Question

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!


71815834_701768076974564_7688403304254013440_n.jpg

Image transcriptions

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]

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...
Get unstuck

321,403 students got unstuck by Course
Hero in the last week

step by step solutions

Our Expert Tutors provide step by step solutions to help you excel in your courses