Question: I need the correct answer because i was told the answer was 116 pounds but that was wrong. The Corner Wholesale buys fresh potato for
I need the correct answer because i was told the answer was 116 pounds but that was wrong.
The Corner Wholesale buys fresh potato for $7 per 10-pound bag. The potato is bought and sold in 10-pound bags. The Corner sells them the for $24 per 10- pound bag. Any potato not sold that day are sold to Joy's fast food for $2.50 per 10-pound bag. Joy uses them for fried potato. Based on the past experience, the demand of the potato per day at the Corner Wholesale is distributed as follows: Demand (pounds) 90 100 110 120 130 140 Probability 0.10 0.15 0.20 0.25 0.20 0.10 Determine how many pounds of potato the Corner Wholesale should order per day to maximize its expected profits. pounds
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