Question

Giada, the manager of Ye Olde Coffee Shoppe, is deciding how many Asiago cheese bagels to order for tomorrow moming According to her records, for the past 10 days, the demand is shown on the table below. She buys her bagels for $1.5 and sells them for $140. Unsold bagels are discarded. Find her expected value for her profit or loss if the orders 30 bagels for tomorrow moming Demand for Asiage Bagels 40 Number of Days with These Sales 2 Giada can expecta (Round to the nearest cent as needed)

Answer 1

Solution: Demand probability Profit I loss 40 0.8 32 30 0.2 6 The expected value in profit lloss for order 30 bageis is - 6-8)(32) +-2)6) = 25.6f 1.2 =126.8 Giada can expect a profit of 26.8) $