Question: Q 2 . ( 2 0 points ) The UTD cafeteria offers scones for ( $ 1 . 5 ) each from
Q points The UTD cafeteria offers scones for $ each from am to pm The scones are ordered from their supplier at the beginning of each day and are delivered before the store opens. The supplier charges cents per scone. If at pm some scones are left unsold, the cafeteria sells the remaining scones for cents each. Assume that all leftover scones are always sold by pm when the cafeteria closes. If a customer asks for a scone before pm but the cafeteria has run out, the customer always buys a bag of chips for $ instead after pm the customer does not buy anything instead Assume the chips are always in stock, and they are purchased from the same supplier for cents each. Demand for scones before pm at the cafeteria is variable but can only take values between and with probabilities given in the following table.
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a Yesterday the cafeteria ordered scones, and customers came wanting to buy a scone between am and pm What was their total profit including if any, the profit on chips sold instead of scones points
b How much is the underage cost mathrmCmathrmu points
c How much is the overage cost mathrmCmathrmo points
d What is the optimal number of scones to order at the start of each day? points
e Given the order quantity in part d what is the probability that the cafeteria cannot satisfy all the demand for scones before pm mathbf points
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