Kroger at Scottsville Road makes fresh pumpkin pies each morning. The daily demand for these pies is a random variable with a distribution estimated from manager Mike's experience given by

Mike knows that the cost of making one pumpkin pie is about $10. In the store, pumpkin pies are sold for $17.50 each. At the end of the day, unsold pumpkin pies are sold to Bowling Green food bank for $8.50 each.

(a) How many pumpkin pies should Kroger make at the start of each day?

(b) Determine the average number of pumpkin pies sold to Bowling Green food bank (Average Overstock) and average number of customers turned away (Average Understock).

Transcribed Image Text:

Number of pumpkin pies sold in one day 0 5 10 15 20 25 30 35 Probability 0.10 0.15 0.25 0.10 0.25 0.05 0.05 0.05 Number of pumpkin pies sold in one day 0 5 10 15 20 25 30 35 Probability 0.10 0.15 0.25 0.10 0.25 0.05 0.05 0.05

Answer rating: 100% (QA)

a Cost of making one pumpkin is 10 unit selling price is 1750 and unsold are given to Bowling Green ... View the full answer