Homework Help: Probability

Posted by Stephanie on Sunday, October 16, 2011 at 3:29pm.

rent-4-wheels makes a profit of $12 per day for each car rented, and loses $4 per day for each car that is not rented. How many cars should the company have on hand to maximize profit, subject to the following probability distribution:

anticipated number of rental requests
12 11 10 9 8 7 6
Probability
.09 .011 .22 .24 .12 .12 .10

This is what I did and I;m not sure if it's correct.

(12)(.09)+(4)(.91)=4.72
(11)(.11)+(4)(.89)=4.77
ect. i got that company should have ten cars to maximize profit

No one has answered this question yet.

Answer this Question

Related Questions

math - ent-4-wheels makes a profit of $12 per day for each car rented, and loses...
algebra 2 - A rental car agency charges $13 per day plus 12 cents per mile to ...
programming - This pseudocode should detrmine the rental fees for cars // ...
Calculus - A car rental agency rents 180 cars per day at a rate of 32 dollars ...
ALGEBRA - Company A charges $55 per day plus $0.35 per mile to rent a car. ...
algebra - Company A charges $55 per day plus $0.35 per mile to rent a car. ...
Help On Math - A movie theater has fixed costs of $5,500 per day and variable ...
Math - Company Alpha rents a compact car for $20 per day plus $0.09 per mile. ...
math - Suppose you are looking for a job. You interview with a company that has...
math (statistics) - Suppose you are looking for a job. You interview with a ...

For Further Reading

First Name:
School Subject:
Answer: