A Company Sells Its Products to Wholesalers in Batches of 1,000

Short Answer

A company sells its products to wholesalers in batches of 1,000 units only. The daily demand for its product and the respective probabilities are given below.
$\begin{array}{cc}\text { Demand Units) }&\text { Probability }\\0 & 0.2 \\1000 & 0.2 \\2000 & 0.3 \\3000 & 0.2 \\4000 & 0.1\end{array}$
a. Determine the expected daily demand.
b. Assume that the company sells its product at $3.75 per unit. What is the expected daily revenue?