### Answer

A little industry orders copies of a particular magazine for its magazine rack each week. Let $X=$ demand for the magazine, via pmf$$eginarraycccccx & 1 & 2 & 3 & 4 & 5 & 6 \ hline p(x) & frac115 & frac215 & frac315 & frac415 & frac315 & frac215endarray$$Suppose the store owner actually pays $$ 2.00$ for each copy of the magazine and also the price to customers is $$ 4.00 .$ If magazines left at the finish of the week have no salvage value, is it better to order three or four copies of the magazine?

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Probcapability with Applications in Engineering, Science, and Technology (precalculus, calculus, Statistics)

### Video Transcript

so the H three of X in each four of X equal the net revenue for 3 duplicates and 4 coffees purchase, respectively. And so them net revenue is actually given by seals for you, minus the order cost. And this is for 3 copies purchased. It's just for 4 parties. So if 3 magazines are ordered, that implies $6 invested then the net revenue is $4 minus $6 simply negative $2. And if X equals one, we have that. The net revenue is two times $4 minus $6 which is $2. And if X equates to to the net, revenue is $6 Mexico's three also 6. And if X equates to 45 or 6, it's likewise six, given that the added demand isn't met. So the worths of age four of X deserve to also be deduced in the exact same means. So we have that Both distributions deserve to be summarized as fathers Ex fish. Three. It's 4 and a couple of bets, so we have actually 123 for 56 negative 2 to 6666 negative 40 for eight feet Utes and one over 15 215 3 over 15 4 15 3 or 15. So utilizing the table, we have actually that expectation off. Each 3 effects is equal to sum over at people's 1 to 6 each. Three of x times P Let's, which comes out to $4.93 and also similarly expectation of each for Vex comes out to $5.33. So therefore, ordering 4 copies gives slightly higher revenue on average. Since you have $4.5 dollars, 33 cents. Wbelow is this? $4? 93 cents, so you have a slightly higher revenue average.

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Probcapacity with Applications in Engineering, Science, and also Technology (precalculus, calculus, Statistics)