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A newsboy purchases papers at 10 cents and sells them at 15 cents. However, he is not allowed to return unsold papers. If his daily demand is a binomial random variable with n = 10 , p = 1 3 , approximately how many papers should he purchase so as to maximize his expected profit?

User Roygvib
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1 Answer

5 votes

Answer: 8.700

Explanation:

A newsboy purchases papers at 10 cents and sells them at 15 cents. However, he is-example-1
User LeonardChallis
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