Instructions – Work on this problem set and post your solutions (with the steps you used) to the discussion board of Blackboard. If you are having trouble getting to the answer, tell us what you’ve done so far and where you are getting stuck.
Supermarkets often receive damaged food products in shipments which they cannot sell to customers.
Bill’s Supermarket is a small grocery store located in Cleveland.
Bill’s receives 150 shipments per month.
In the past four months, Bill’s received 35, 55, 65, and 45 shipments with damaged food products.
ShopAll is a large, multi-state supermarket in the Midwest.
ShopAll receives 10,000 shipments per month.
In the past four months, ShopAll received 2,450, 2,850, 2,200, and 2,500 shipments with damaged food products.
1. What is the probability of a shipment containing damaged food products for each business?
2. Calculate the standard deviation and coefficient of variation of damaged shipments for the two businesses. Which business has greater risk concerning the occurrence of a damaged food shipment?
3. If a shipment is damaged, the average amount of unsellable food for Bill’s is $25. Based on this past data, what is Bill’s Expected Loss for damaged food products next month?