Question

e) Mininian Icg (25 pts.) 2. Arnold's pastries are freshly baked and sold at several specialty shops throughout New Jersey. When there are a day old, they must be sold at reduced pr Daily demand is distributed as follow ices. Probability 20 .35 .25 -20 Demand 100 200 300 400 Each pastry sells for $2.89 and costs $1.89 to make. Each one not sold at the end of the day can be sold the next day for $1.59 as day-old merchandise. a) How many pastries should be baked each day? b) What is the expected value of perfect information?