A Radio Manufacturer Is Experiencing Theft Problems at Its Warehouse

question 3

Multiple Choice

A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts.

$\begin{array}{ll} \text { Number of}& \text {Number of Radios }\\ \text { Security Guards}& \text { Stolen Per Week}\\0 & 50 \\1 & 30 \\2 & 20 \\3 &14 \\4 & 8 \\5 & 6 \\\end{array}$
-If each security guard is paid $200 a week and the cost of a stolen radio is $25, how many security guards should the firm hire?

• A) 1
• B) 2
• C) 3
• D) 4
• E) 5

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Definitions:

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely.

Probability

The chance of a particular outcome occurring, often quantified as a number between 0 (impossible) and 1 (certain).

Subway Waiting

The period of time passengers wait for a subway train to arrive at a station.

Normal Distribution

A probability distribution that is evenly balanced around the mean, indicating that values close to the mean occur more frequently than values that are distant from the mean.