A hotdog vendor buys hotdogs for $4 and sells them for $8 during the day to tourists. At the end of the day and leftover hotdogs are sold for $2. If the vendor follows a simply news vendor model for stocking what is the desirable probability that the hotdog vendor does not buy enough hotdogs to meet his daily demand? 25% O 33% - 50% 67% O 75%
A hotdog vendor buys hotdogs for $4 and sells them for $8 during the day to tourists. At the end of the day and leftover hotdogs are sold for $2. If the vendor follows a simply news vendor model for stocking what is the desirable probability that the hotdog vendor does not buy enough hotdogs to meet his daily demand? 25% O 33% - 50% 67% O 75%
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section11.4: Marketing Models
Problem 35P
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Transcribed Image Text:A hotdog vendor buys hotdogs for $4 and sells them for $8 during the day to tourists. At the end
of the day and leftover hotdogs are sold for $2. If the vendor follows a simply news vendor model
for stocking what is the desirable probability that the hotdog vendor does not buy enough
hotdogs to meet his daily demand?
25%
33%
O 50%
67%
O 75%
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