May
1
comment Min/Max Expectation problem (very difficult)
This suggests that there is a probability of 0 that a request for 3 or more salmon will be made. As such the only requests that can be made are for 0, 1, or 2 salmon. There is a 25% chance that the request will be 0, a 50% chance the request will be 1 and a 25% chance the request will be 2. This means that there is a 75% chance that the request will be for at least one salmon. The expected value of stocking one salmon is $1.50 (0.75x2). This is higher than the expected value of stocking 2 salmon (0.25x4), and so the profit maximizing amount should be x=1.
May
1
answered Min/Max Expectation problem (very difficult)
May
1
awarded Student
May
1
asked Example questions for bias/consistent estimators.