Suppose your club is selling candles to raise money. It cost $100 to rent a booth from which to sell the candles. If the candles
2 answers:
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Answer:
The value is
Step-by-step explanation:
From the question we are told that
The parameters are α = 3, θ = 0.5
The cost of making a unit on the first day is c = $2
The selling price of a unit on the first day is s = $5
The selling price of a leftover unit on the second day is v = $ 1
Generally the profit of a unit on the first day is
The profit of a unit on the second day is
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Generally the probability of making profit greater than $ 1 is mathematically represented as
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Now from the gamma distribution table we have that
Generally the probability of making profit less than or equal to $ 1 is mathematically represented as
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So the probability of making $3 is
and the probability of making -$1 is
Generally the value of profit per day is mathematically represented as
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