I\'ve been working on this problem all morning, please help \\ Question Completi

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I've been working on this problem all morning, please help

Question Completion Status Daring the winter months, homse depot stocks snow shovels. They receatly stocked ergoeomic snow shovels designed by True Temper. The shovels sell for $26.00. The demand for shovels is not known with certainty, However, management has estimated the demand during the winter can be estimated by the following probability distribution. QUESTION 1 25 0.30 50 015 100 0.25 150 0.05 The store manager buys the shovels from the manufacturer at unit cost of $17.00. Assume the store manager places an order at the begining of the selling sea shovels Format for answers below should be accurate to 2 decimal places 1. What is the expected dem and? 2 What is the expected number of sborvels sold? 3 Whast is te expected proft s 4 How many shovels would home depot have at the end of the selling season (on average)? 5. What is the probability that the supply of 100 shovels is insufficient to satisfy demand? 6 What is the expected eam ber of lost sales? Click Save and Submit to save and submit.Ciek Save All Anneers to save all answers Save All Answers Close V Type here to search

Explanation / Answer

1. Expected demand = 0.3x25 + 0.15x50 + 0.1x75 + 0.25x100 + 0.15x125 + 0.05x150

= 7.5 + 7.5 + 7.5 + 25 + 18.75 + 7.5

= 73.75

2. Expected number of showels sold = 0.3x0.25 + 0.15x50 + 0.1x75 + 0.45x100

= 67.5x26 - 100x17

= $55

4. Number of showels remaining = 100-67.5 = 32.5

5. Probability that supply of 100 shovels is insufficient = 0.15 + 0.05 = 0.2

6. Expected number of lost sales = (125-100)x0.15 + (150-100)x0.05

= 3.75 + 2.5

= 6.25

3. Expected profit = 67.5 x (

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