document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=347515>Question 347515</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Dear tutors I would be very grateful for you help to this question :\r<BR>\n" );
document.write( "\n" );
document.write( "  A small drugstore orders copies of a certain magazine for its magazine rack each week. Let X equal the demand for the magazine, that is, the number of customers who desire to buy the magazine in a week. Assume the pmf of X is as follows:\r<BR>\n" );
document.write( "\n" );
document.write( "   X:    1     2       3      4      5       6 <BR>\n" );
document.write( "f(x):  1/15   2/15    3/15    4/15   3/15    2/15 \r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Suppose the store owner actually pays $1.00 for each copy of the magazine and charges customers $2.00. If the magazines have no salvage value, is it better to order 3 or 4 copies of the magazine? Hint: Consider the expected profit to the drugstore </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #248450 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=248450\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"Garamond\" size=\"+2\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "The probability of selling at least 3 is 1 minus the probability of selling exactly 1 plus the probability of selling exactly 2.  (There is actually a fallacy in your probability function since you don't have a finite probability > 0 that the store will sell 0 magazines).  The probability of selling at least 4 is 1 - (P(1) + P(2) + P(3)), so:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ P(\geq3)\ =\ 1\ -\ \left(\frac{1}{15}\ +\ \frac{2}{15}\right)\ =\ \frac{4}{5}\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ P(\geq4)\ =\ 1\ -\ \left(\frac{1}{15}\ +\ \frac{2}{15}\ +\ \frac{3}{15}\right)\ =\ \frac{3}{5}\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Cost of 3 magazines = <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE 3\ \times\ $1\ =\ $3\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Expected return on 3 magazines = <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE 3\ \times\ $2\ \times\ \frac{4}{5}\ =\ $4.80\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Profit on 3 = <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE 4.80 -\ 3\ =\ $1.80\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Cost of 4 magazines = <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE 4\ \times\ $1\ =\ $4\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Expected return on 3 magazines = <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE 4\ \times\ $2\ \times\ \frac{3}{5}\ =\ $4.80\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Profit on 4 = <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE 4.80 -\ 4\ =\ $0.80\">\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "John<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE e^{i\pi} + 1 = 0\"><BR>\n" );
document.write( "My calculator said it, I believe it, that settles it<BR>\n" );
document.write( "<div  DISABLED_style= \"text-align:center\"><a  rel=nofollow HREF=\"http://outcampaign.org/\" target=\"_blank\"><IMG STYLE=\"max-width:80%;\" src=\"http://cdn.cloudfiles.mosso.com/c116811/scarlet_A.png\" border=\"0\" alt=\"The Out Campaign: Scarlet Letter of Atheism\" width=\"143\" height=\"122\" /></a></div><BR>\n" );
document.write( "</font> </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );