How do you find h(x) to calculate the expected value of a function A computer st

Question

How do you find h(x) to calculate the expected value of a function

A computer store has purchased three computers of a certain type at $500 apiece. It will sell them for S1000 apiece. The manufacturer has agreed to repurchase any computers still unsold after a specified period at $200 apiece. Let X any computers stll unsold after a specified period at $200 apiece. Let 1X denote the number of computers sold, and suppose that p(0) ,l, p(1-2, p(2)= .3, and p(3)=4. With h(X) denoting the profit associated with

Explanation / Answer

Money earned by selling one computer = $1000

Money earned by selling X computers = $1000X

Money earned by giving back one computer to the manufacturer = $200

Number of computers unsold = 3-X

Money earned by giving back 3-X computers to the manufacturer = $200(3-X)

Money spent on purchasing computers = $500*3 = $1500

Therefore, net revenue = 1000X+200(3-X)

net cost = 1500

h(X) = Profit = Revenue- cost = 1000X+200(3-X) - 1500

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.