Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip .20 . Processing an order for more disks cost 15 . Zip uses 60000 disks annually, and the company has a 25 cost of capital.
a. Find the optimal order quantity.
b. How many orders are placed annually?
c. How frequently will orders be placed?
Question 2
A local university reports that 10 of their students take their general education courses on a pass/fail basis. Assume that fifteen students are registered for a general education course.
a. What is the expected number of students who have registered on a pass/fail basis?
b. What is the probability that exactly five are registered on a pass/fail basis?
c. What is the probability that more than four are registered on a pass/fail basis?
d. What is the probability that less than two are registered on a pass/fail basis?
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