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arock1 arock1
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6 years ago
A company produces six-packs of soda cans. Each can is supposed to contain at least 12 ounces of soda. If the total weight in a six-pack is under 72 ounces, the company is fined 100 and receives no sales revenue for the six-pack. Each six-pack sells for 3.00. It costs the company 0.02 per ounce of soda put in the cans. The company can control the mean fill rate of its soda-filling machines. The amount put in each can by a machine is normally distributed with standard deviation 0.10 ounce.
  A) Assume that the weight of each can in a six-pack has a 0.8 correlation with the weight of the other cans in the six-pack. What mean fill quantity (within 0.05 ounce) maximizes expected profit per six-pack?
 
  (B) If the weights of the cans in the six-pack are probabilistically independent, what mean fill quantity (within 0.05 ounce) will maximize expected profit per six-pack?
 
  (C) How can you explain the difference in the answers for (A) and (B)?
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shahanasshahanas
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6 years ago Edited: 5 years ago, bio_man
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arock1 Author
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#2
6 years ago
You are always so helpful
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