Question

I have 100 items of a product in stock. Analysis of past records indicate that the product's demand varies from 90 to 110 by increments of 5 . Each possible value of demand has the same pro

Answer 1

The student's question involves calculating the probability for each demand level of a product using a discrete uniform distribution, where each demand level from 90 to 110 in increments of 5 is equally likely.

Step-by-step explanation:

The question pertains to the evaluation of probabilities for varying demand levels of a product in stock. Since the product's demand ranges from 90 to 110 with equal probabilities and increments of 5, we have a discrete uniform distribution of probabilities.

This means that each demand level (90, 95, 100, 105, 110) is equally likely to occur. Since there are five possible demand levels, the probability of each demand level occurring is 1/5 or 20%. To calculate this, we can use the formula for the uniform distribution probability which is 1 divided by the number of outcomes.

Example Calculation:

For a demand of 95 units,

1. Count the total number of possible demands (here, we have 5 possible demands).
2. Since each demand is equally likely, divide 1 by the number of possible demands (1/5).
3. The result is the probability of any single demand occurring, which in this case is 20%.