A newsvendor can sell newspapers to the public for $5/unit. The papers must be bought for $1.25/unit

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A newsvendor can sell newspapers to the public for $5/unit. The papers must be bought for $1.25/unit in the early hours of the morning. The papers may be salvaged for $0.25/unit at a senior living facility by 8pm. The demand for newspaper is Poisson distributed with a mean of 325. What is the expected profit of the newsvendor?

Posted Date: May 17, 2024 05:10 PM

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A newsvendor can sell newspapers to the public for $5/unit. The papers must be bought for $1.25/unit

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