Problem 3 (22 points): In a Newsvendor model, the demand function is D(p) = 20- Pte where the distribution of c is given by the following table value -6 -4 0 4 6 probability 1/5 1/5 1/5 1/5 1/5 The cost of producing (ordering) a unit is h = 6. Questions: For the following three cases, determine the price p (if needed), and then under the given p, determine the optimal order quantity y*, and the expected profit pE min(D(p), y*)] - hy* 1. (6 points) p is chosen to maximize the expected revenue: PE[D(P)] 2. (6 points) p is chosen to maximize the expected profit with h as the cost: (p - h) E[D(p)] 3. (6 points) p = 12. 4. (4 points) In which of the first two case, the price is set too low or too high? Can you come up an intuitive reason to explain why