Compare your answer to question $3$ with $\backslash$pi $($y$)$ and C$($y$),$ where

y$$ is the optimal order quantity and

$\backslash$pi $($y$)=$ pE$[$min$($X$,$ y$)]$ hy$$

C$($y$)=($p $$ h$)$E$[($X $$ y$)+]+$ hE$[($y$$ X$)+]$

are objective values of two alternative Newsvendor formulations. What is

the relationship between these quantities, and what is the explanation of

that relationship?

$2$