A Video Rental Store Has Two Video Cameras Available for Customers

question 6

Essay

A video rental store has two video cameras available for customers to rent.Historically,demand for cameras has followed this distribution.The revenue per rental is $40.If a customer wants a camera and none is available,the store gives a $15 coupon for snacks. $$\begin{array} { c c c c } \text { Demand } & \text { Relative Frequency } & \text { Revenue } & \text { Cost } \\\hline 0 & .35 & 0 & 0 \\1 & .30 & 40 & 0 \\2 & .20 & 80 & 0 \\3 & .10 & 80 & 15 \\4 & .05 & 80 & 30\end{array}$$
a.What is the expected demand for camera rentals?
b.What is the expected revenue from camera rentals?
c.What is the expected cost associated with camera rentals?
d.What is the expected profit from camera rentals?

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Definitions:

Chemical Activity

The measure of the reactivity level of a chemical substance when it undergoes a chemical reaction.

Transcranial Magnetic Stimulation (TMS)

A treatment procedure for depression and certain other disorders in which an electromagnetic coil, which is placed on or above a person’s head, sends a current into the person’s brain.

Electromagnetic Coil

A coil used to generate a magnetic field when electricity is passed through it, often used in scientific and industrial applications.

Brain Stimulation

Therapeutic techniques using electrical impulses or magnetic fields to directly or indirectly stimulate specific areas of the brain to treat neurological or psychiatric conditions.