MillyMay

02-24-2010, 06:15 AM

the demand for a magazine is thought to be modelled by a Gamma distribution

with mean 10,000 and variance 1,000,000. A publisher prints and distributes 11,000 copies of this magazine each day. The profit on each magazine sold is $1, the loss on each magazine unsold is $0.25.

we know that the expectation E[.] of a function g(.) of a random variable X, having probability density function f(x) is given by E[g(X)]. For our magazine problem above, we know that f(x) follows a Gamma distribution. we need the function g(x) for net profit.

Can anyone help us to find this. Thanks

with mean 10,000 and variance 1,000,000. A publisher prints and distributes 11,000 copies of this magazine each day. The profit on each magazine sold is $1, the loss on each magazine unsold is $0.25.

we know that the expectation E[.] of a function g(.) of a random variable X, having probability density function f(x) is given by E[g(X)]. For our magazine problem above, we know that f(x) follows a Gamma distribution. we need the function g(x) for net profit.

Can anyone help us to find this. Thanks