Question: The following table shows Bob s Bookstore s estimated demand for a

The following table shows Bob’s Bookstore’s estimated demand for a new calendar. The bookstore needs to decide whether to order 100, 200, or 300 calendars for the start of the year. Each calendar costs the store $ 6 to purchase and can be sold for $ 14. The store can sell any unsold calendars back to its supplier for $ 2 each. Determine the number of calendars Bob’s Bookstore should order to maximize its expected monetary value.
Demand Probability
100 ........ 0.25
200 ........ 0.40
300 ........ 0.35

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