n average a supermarket sells 500 litres of milk a day with a standard deviation of 50 litres. If the supermarket has 600 litres in stock at the beginning of a day, what is the probability that it will run out of milk? What is the probability that demand is between 450 and 600 litres in a day? How many litres should the supermarket stock if it wants the probability of running out to be 0.05?
n average a supermarket sells 500 litres of milk a day with a standard deviation of 50 litres. If the supermarket has 600 litres in stock at the beginning of a day, what is the probability that it will run out of milk? What is the probability that demand is between 450 and 600 litres in a day? How many litres should the supermarket stock if it wants the probability of running out to be 0.05?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
Problem 7MC
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Question
On average a supermarket sells 500 litres of milk a day with a standard deviation of 50 litres.
If the supermarket has 600 litres in stock at the beginning of a day,
-
what is the probability that it will run out of milk?
-
What is the probability that demand is between 450 and 600 litres in a day?
-
How many litres should the supermarket stock if it wants the probability of running out to
be 0.05?
4. How many should it stock if it wants the probability of running out to be 0.01?
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