Mathematics, 18.03.2021 02:10 FlyingUnicorn123
Bev's Bakery specializes in sourdough bread. Early each morning, Bev must decide how many loaves to bake for the day. Each loaf costs $0.75 to make and sells for $2.85. Bread left over at the end of the day can be sold the next day for $1.00. Past data indicate the demand is distributed as follows:-
No. of Loaves Probability
15 0.05
16 0.05
17 0.10
18 0.10
19 0.20
20 0.35
21 0.10
22 0.05
Construct a payoff table and determine the optimal quantity for Bev to bake each morning using expected values.
What is the optimal quantify for Bev to bake if the unsold loaves cannot be sold to the day-old store at the end of the day (i. e., unsold loaves are a total lost)?
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Bev's Bakery specializes in sourdough bread. Early each morning, Bev must decide how many loaves to...
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