Question: Historical demand distribution for a cell phone is given below. Retailers must sell the phone at $300, and they will buy the phone from the

Historical demand distribution for a cell phone is given below. Retailers must sell the phone at $300, and they will buy the phone from the manufacturers for $150. Any unsold phones will be returned to the manufacturer, for which they will be reimbursed $50.

Demand	330	335	340	345
Probability	0.15	0.25	0.35	0.25

1.Help make retailers the best stocking decision by constructing a table of conditional profits.

2.How many phones should they stock for the highest expected profit?

3.The manufacturer offers its retailers Cassandra Forecasting Service at a price. This service will tell the retailer exactly how much the demand will be. At most, how much should the retailer pay for this service?

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