1. Doc Nix Productions sells specialty T-Shirts that are sold at a single basketball game each. Doc Nix is trying to decide how many to buy for an upcoming game. During the game itself, which lasts one evening, Doc can sell T-Shirts for $11 apiece. However, when the game ends unsold T-shirts have no value. Due to a licensing agreement, Doc needs to make sure that leftover shirts are destroyed using a method that ends up costing $0.25 for each unsold T-Shirt. It costs Doc $7.50 to buy a specialty T-Shirt from the supplier. The supplier he uses has a cost per shirt of $3. Doc estimates that demand is distributed as shown below. Doc's supplier is contemplating "cutting out the middleman" (i.e., Doc Nix) and offering its products only through a direct channel.. In this case, please answer the following:

1. (2 points) How many specialty T-Shirts should the supplier produce to maximize profits?

Demand	325	350	375	400	425	450
Probability	0.10	0.15	0.10	0.20	0.25	0.20