Question: Dorothys pastries are freshly baked and sold at several specialty shops throughout Perth. When they are a day old, they must be sold at reduced

Dorothy’s pastries are freshly baked and sold at several specialty shops throughout Perth. When they are a day old, they must be sold at reduced prices. Daily demand is distributed as follows:
Demand Probability
50 ...... 0.25
150 ...... 0.50
200 ...... 0.25
Each pastry sells for $1.00 and costs $0.60 to make. Each one not sold at the end of the day can he sold the next day for $0.30 as day-old merchandise. How many pastries should be baked each day?

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