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A Retailer of Electronic Equipment Received Six VCRs from the Manufacturer

question 111

Essay

A retailer of electronic equipment received six VCRs from the manufacturer. Three of the VCRs were damaged in the shipment. The retailer sold two VCRs to two customers.
a.Can a binomial formula be used for the solution of the above problem?
b.What kind of probability distribution does the above satisfy, and is there a function for solving such problems?
c.What is the probability that both customers received damaged VCRs?
d.What is the probability that one of the two customers received a defective VCR?


Definitions:

Optimal Quantity

The amount of a good or service that achieves the best balance between cost and efficiency in production and distribution.

Vertically Integrated

A business model in which a company controls multiple levels of its supply chain, from production to sales.

Order Quantity

the amount of inventory ordered at one time to replenish stocks, often determined by balancing ordering costs and holding costs.

Vertically Integrated

A business structure where a company controls multiple stages of production within its supply chain, from raw materials to final product delivery.

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