# A small supermarket is trying to determine how many copies of PEOPLE magazine

Question # 00004842 Posted By: expert-mustang Updated on: 12/07/2013 08:59 AM Due on: 12/07/2013
Subject Economics Topic General Economics Tutorials:
Question
A small supermarket is trying to determine how many copies of PEOPLE magazine it should order next week. The owner believes the demand for PEOPLE is governed by the following discrete random variable:

Demand Probability
15 0.1
20 0.2
25 0.3
30 0.25
35 0.15

The Supermarket pays \$1.00 for each copy of PEOPLE and sells it for \$1.95. Each unsold copy can be returned for \$.50. How many copies of PEOPLE should the store order?
Tutorials for this Question
1. ## Solution: A small supermarket is trying to determine how many copies of PEOPLE magazine

Tutorial # 00004638 Posted By: expert-mustang Posted on: 12/07/2013 09:01 AM
Puchased By: 2
Tutorial Preview
The solution of A small supermarket is trying to determine how many copies of PEOPLE magazine...
Attachments
A_small_supermarket_is_trying_to_determine_how_many_copies_of_PEOPLE_magazine.xlsx (38.88 KB)

Great! We have found the solution of this question!