Mathematics

Mathematics, 13.03.2020 00:37, tk1264

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: (a) Suppose he buys k newspapers for some nonnegative integer k. What is the probability mass function of his profit? (b) How many papers should he purchase so as to maximize his expected profit?

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