A Las Vegas supermarket bakery must decide how many wedding cakes to prepare for the upcoming weekend. Cakes cost $ 33 each to make, and they sell for $ 60 each. Unsold cakes are reduced to half- price on Monday, and typically one- third of those are sold. Any that remain are donated to a nearby senior center. Analysis of recent demand resulted in the following table:

How many cakes should be prepared to maximize expected profit?

a. Use the ratio method.

b. Use the tabular method.

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Demand 0 1 2 3 Probability .15 .35 .30 .20