Discrete Uniform Example

A manufacturer determines that he must receive 10% over production costs—or a minimum of $5 per unit—to make the manufacturing effort worthwhile. He also wants to set the maximum price for the product at $15 per unit, so that he can gain a sales advantage by offering the product for less than his nearest competitor. All values between $5 and $15 per unit have the same likelihood of being the actual product price, however he wants to limit the price to whole dollars (Figure 82, Discrete Uniform Distribution).

Figure 82. Discrete Uniform Distribution

This figure displays a discrete uniform distribution.