Question

3) The demand for a product varies from month to month. Based on the past year's...

3) The demand for a product varies from month to month. Based on the past year's data, the following probability distribution shows MNM company's monthly demand.

x

f(x)

Unit Demand

Probability

0

.10

1,000

.10

2,000

.30

3,000

.40

4,000

.10

a. Determine the expected number of units demanded per month and the standard deviation

Math   Statistics-And-Probability   
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Homework Answers

Answer #1

Solution :

x P(x) x * P(x) x2 * P(x)
0 0.1 0 0
1000 0.1 100 100000
2000 0.3 600 1200000
3000 0.4 1200 3600000
4000 0.1 400 1600000
Sum 1 2300 6500000

Mean = = X * P(X) = 2300

Expected number of units demanded per month = 2300

Standard deviation =

=X 2 * P(X) - 2

=  (6500000 - 23002)

= 1100

Standard deviation = 1100

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