Question

In: Statistics and Probability

The demand, D, for parts at a repair bench per day can be described by the...

The demand, D, for parts at a repair bench per day can be described by the following discrete PMF:

D 0 1 2
p(D) 0.3 0.2 0.5

Generate the demand for the first 4 days using the following numbers (starting with the first row)

.943 .398 .372 .943 .204 .794
.498 .528 .272 .899 .294 .156
.102 .057 .409 .398 .400 .997

Solutions

Expert Solution

The given PMF ( probability mass function) of a repair bench per day is as follows:

PMF:

D 0 1 2
p(D) 0.3 0.2 0.5

Let's find distribution function of D

PMF:

D 0 1 2
F(D) 0.3 0.5 1.0

We want to generate the demand for the first 4 days :

The first number in the first row is 0.943

From the cumulative distribution function, we have P( D <= 1) = 0.5 < 0.943 < P( D < = 2) = 1

Therefore for first day the demand D = 2

Then 2nd number in the firsrt row is 0.398. Since,

P( D <= 0) = 0.3 < 0.398 < P( D < = 1) = 0.5

We select demand for 2nd day as D = 1

The 3rd number in the first column is 0.372.

Since,

P( D <= 0) = 0.3 < 0.372 < P( D < = 1) = 0.5

We select demand for 3rd day as D = 1

The fourth number in the first column is 0.943.

Since P( D <= 1) = 0.5 < 0.943 < P( D < = 2) = 1

We select demand for 4th day as D = 2

So demand selected in first, second, third, and fourth days are 2, 1, 1, and 2 respectively.


Related Solutions

A supply-demand graph can be described as having a demand curve that begins in the upper...
A supply-demand graph can be described as having a demand curve that begins in the upper left and slopes downward to the lower right; and having a supply curve demand decreases. Using words in a narrative, please describe and explain how both the equilibrium price and quantity will change when: a) Only supply decreases b) Only supply increases c) Only demand increases d) Only demand decreases
Genes can generally be described as having two distinct parts. What are they?
Genes can generally be described as having two distinct parts. What are they?
The demand and supply for an unnamed product can be described by: QD = 200 –...
The demand and supply for an unnamed product can be described by: QD = 200 – 2×PD (demand function); QS = 4×PS – 16 (supply function). 2. At the Pareto-Efficient quantity, what is the total benefit provided to buyers of all units produced and traded? A. No more than $2,000 B. More than $2,000 but no more than $4,000 C. More than $4,000 but no more than $6,000 D. More than $6,000 but no more than $8,000 E. More than...
Demand for Coca Cola at a local restaurant is 60 bottles per day with a standard deviation of 15 bottles per day.
Demand for Coca Cola at a local restaurant is 60 bottles per day with a standard deviation of 15 bottles per day. a. Compute the probability that demand will be at most 1700 bottles during the next 28 days. b. Compute the number of bottles the restaurant should stock to have at most a 9% chance of running out over the next 28 days.
The current demand is 40 customers per day. Mr. Miller expects that the demand grows to...
The current demand is 40 customers per day. Mr. Miller expects that the demand grows to 50 customers per day with the promotion. The shop has four technicians and they receive $15 per hour. In addition to the labor cost, the shop incurs overhead that is 1.2 times the labor cost and the equipment cost that is $10 per customer. The shop operates 8 hours per day. In order to meet the larger demand, Mr. Miller considers the following three...
1. Suppose that the market for coffee can be described by the following demand and supply...
1. Suppose that the market for coffee can be described by the following demand and supply curves (prices are per kg): Qd = 260 ? 5P QS = 8P a) Find the market equilibrium in the absence of taxes. Draw the demand and supply curves, labelling all intercepts and the market equilibrium b) Calculate the values of consumer surplus (CS) and the producer surplus (PS) indicating each of these on the diagram in a). c) Suppose now that the government...
Suppose that the demand curve for pizzas (in thousands per day) is given by P =...
Suppose that the demand curve for pizzas (in thousands per day) is given by P = 12 – 0.5Q. Calculate the price elasticity of demand if the price is equal to $6. Give and explain one factor that could cause the elasticity of demand for pizzas to increase.
A product has a daily demand of 26 units per day. Ordering costs are $60 per...
A product has a daily demand of 26 units per day. Ordering costs are $60 per order. The annual carrying costs are measured at 20% of item value. Your supplier has offered you three item cost/price and quantity scenarios (1) you pay $150 per unit if your order quantity is 199 units or less, (2) you pay $121 per unit if your order quantity is between 200 and 4999 units, and (3) you pay $114 per unit if your order...
Suppose the US domestic demand for bicycles can be described as the following demand function: QD=25000-150P....
Suppose the US domestic demand for bicycles can be described as the following demand function: QD=25000-150P. The supply function of bicycles is assumed to be QS=15000+50P. 1. We assume that the bicycle market is competitive. What is the equilibrium price and its equilibrium quantity? 2. Calculate the consumer surplus, producer surplus, and the total surplus. 3. Suppose that due to a trade agreement, the US bicycle market now welcomes foreign bicycles and starts importing bicycles from other countries. The world...
Suppose the labor market can be described by the following: Labour demand: LD = 880 –...
Suppose the labor market can be described by the following: Labour demand: LD = 880 – 50W, where W = wage per hour Labour supply: LS = 40W – 200 The initial equilibrium wage is $12 per hour and the level of employment is 280. Suppose firms are paying their worker $15 per hour, find a change in the level of unemployment. Answer: For numerical answers, just enter the numbers (i.e., no unit of measurement, no comma). For example, if...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT