Question: 2 . 2 7 A foundry has received an order for 2 0 custom - designed castings. The casting process costs 5 0 0 per
A foundry has received an order for customdesigned castings. The casting process costs
per unit. If a casting is not sold, it has a recycle value of
per casting for acceptable castings; the customer has also agreed to pay $ each for one or two additional castings. However, the customer is unwilling to purchase fewer than or more than castings. Based on historical records, the following probability distributions have been estimated. How many castings should be scheduled for production to maximize expected profit? What is the probability of losing money? # Good Castings Number of Castings Scheduled WNNNNNN
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