Question: Evening Shade Novelty Store is planning its sales orders for next year. Every year Evening Shade purchases a novelty lamp in the shape of that

Evening Shade Novelty Store is planning its sales orders for next year. Every year Evening Shade purchases a novelty lamp in the shape of that years date. Evening Shade purchases the lamps for $30 each and sells them for $50. Any lamps leftover at the end of the year are sold at loss, with a salvage value of $20 per lamp. The probability distribution based on historical data of the number of such lamps sold in previous years is shown in table below.

Probability
0.1 0.4 0.5
Demand
10 20 30

How many units should be ordered and available to sell in order to maximize expected profit? Blank 1

What would be the maximum expected profit? Blank 2

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