Problem $20-8($Algo$)$

Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with $($discrete$)$ distribution,

based on past experience, given by

Demand

Probability

$4,15$

$19\%$

$1926\%$

$25$

$26\%$

$31$

$15\%$

$37$

Each apple pie costs the bakery $$9\mathrm{.}15$ to make and is sold for $$27.$ Unsold apple pies at the end of the day are purchased by a nearby

soup kitchen for $88$ cents each. Assume no goodwill cost.

a$.$ If the company decided to bake $19$ apple pies each day, what would be their expected profit? $($Do not round intermediate

calculations. Round your answer to $2$ decimal places.$)$

Expected profit

b$.$ Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit?

Number of apple pies

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NextProblem $20-8($Algo$)$

Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with $($discrete$)$ distribution,

based on past experience, given by

Each apple pie costs the bakery $$9\mathrm{.}15$ to make and is sold for $$27.$ Unsold apple pies at the end of the day are purchased by a nearby

soup kitchen for $88$ cents each. Assume no goodwill cost.

a$.$ If the company decided to bake $19$ apple pies each day, what would be their expected profit? $($Do not round intermediate

calculations. Round your answer to $2$ decimal places.$)$

$$ Answer is not complete.

Expected profit

b$.$ Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit?

Answer is complete and correct.

Number of apple pies