Answer:
The probability of a stockout is the probability that the demand for LNG will exceed the amount of LNG that is available on hand. In this case, the demand for LNG is 2000 kL and the amount of LNG that is available on hand is a random variable, Y, with pdf
f
Y
(y)=
10
1
e
−y/10
for y≥0.
The probability of a stockout is given by the following equation:
P(stockout)=∫
0
2000
f
Y
(y)dy
=∫
0
2000
10
1
e
−y/10
dy
=1−e
−20
=0.1353
Therefore, the probability of a stockout is 13.53%.
Step-by-step explanation: