Business, 20.09.2019 16:30 Seaport

Q12.10** ( the kiosk ) weekday lunch demand for spicy black bean burritos at the kiosk, a local snack bar, is approximately poisson with a mean of 22. the kiosk charges $4.00 for each burrito, which are all made before the lunch crowd arrives. virtually all burrito customers also buy a soda that is sold for 60¢. the burritos cost the kiosk $2.00, while sodas cost the kiosk 5¢. kiosk management is very sensitive about the quality of food they serve. thus, they maintain a strict "no old burrito" policy, so any burrito left at the end of the day is disposed of. the distribution function of a poisson with mean 22 is as follows: q f(q) 1 0. 2 0. 3 0. 4 0. 5 0. 6 0.0001 7 0.0002 8 0.0006 9 0.0015 10 0.0035 q f(q) 11 0.0076 12 0.0151 13 0.0278 14 0.0477 15 0.0769 16 0.1170 17 0.1690 18 0.2325 19 0.3060 20 0.3869 q f(q) 21 0.4716 22 0.5564 23 0.6374 24 0.7117 25 0.7771 26 0.8324 27 0.8775 28 0.9129 29 0.9398 30 0.9595 q f(q) 31 0.9735 32 0.9831 33 0.9895 34 0.9936 35 0.9962 36 0.9978 37 0.9988 38 0.9993 39 0.9996 40 0.9998 cac25200_ch12_240-269.indd 268 1/20/12 10: 11 am rev. confirming pages betting on uncertain demand: the newsvendor model 269 a. suppose burrito customers buy their snack somewhere else if the kiosk is out of stock. how many burritos should the kiosk make for the lunch crowd?

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Q12.10** ( the kiosk ) weekday lunch demand for spicy black bean burritos at the kiosk, a local snac...

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