Question

Correct 2. This question relates to concepts covered in Lectures 1 & 2. You can use any of the excel files posted to work through the question. Demand at a store can be modeled by a random variable which takes the following values across four different scenarios that occur with following probabilities. Scenario Low: D1 = 10 with probability P1=0. 1 Scenario Medium 1: D2 = 30 with probability P...2=0,4 Scenario Medium 2. D3 = 60 with probability p. 3-0.4 Scenario High: 04 = 90 with probability p_4=0.7 What is the mean of this demand distributional

Answer 1

-Але = бе Demand as a store can be modeled by a random lable which takes the following value across Different scenarios lalith different probabilities four different enano low & D = 10 with P = 0.1 Scenario medium 1 6 D₂ = 30 with nedium 1 & ₂ = 30 with 22 20.4 Scenario medium 2 : D = 60 with P₂50 Scenaño High & Dq = go with Py =o. here Pis the probability mean of the demand distribution 0.1(10) + 0.y(30) +004(60) + 0.1(90) = = 1 + 12 + 24 +9 - 46. mean of the Demand distribulon = 46.