A Chemical Supply Company Currently Has in Stock 100lb of a Certain

question 21

Essay

A chemical supply company currently has in stock 100lb of a certain chemical, which it sells to customers in 5-lb lots. Let X = the number of lots ordered by a randomly chosen customer, and suppose that X has pmf $$\begin{array} { l r r r c } \hline x & 1 & 2 & 3 & 4 \\\hline P ( x ) & .2 & .3 & .3 & .2 \\\hline\end{array}$$ Compute E(X) and V(X). Then compute the expected number of pounds left after the next customer's order is shipped, and the variance of the number of pounds left. (Hint: The number of pounds left is a linear function of X.)

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Definitions:

Gross Investment Expenditures

The total amount spent on new capital assets, before accounting for depreciation.

Government Expenditures

The spending by the government sector on goods and services, including public services and public investment.

Welfare Payments

Financial assistance provided by the government to individuals or families in need, aimed at ensuring a minimum level of well-being and social support.

Urban

Relating to or characteristic of a city or town.