A video rental store has two video cameras available for customers to rent. Historically, demand for cameras has followed this distribution. The revenue per rental is $40. If a customer wants a camera and none is available, the store gives a $15 coupon for tape rental.
Demand Relative Frequency Revenue Cost
0 .35 0 0
1 .30 40 0
2 .20 80 0
3 .10 80 15
4 .05 80 30
a. What is the expected demand?
b. What is the expected revenue?
c. What is the expected cost?
d. What is the expected profit?