Question: QUESTION 7 Abby must plan for her lemonade stand next Saturday. She can stock (lemons, sugar) a small amount (cost = $ 10) or a

QUESTION 7 Abby must plan for her lemonade stand

QUESTION 7 Abby must plan for her lemonade stand next Saturday. She can stock (lemons, sugar) a small amount (cost = $ 10) or a large amount (cost = $20) of inventory. But the payoff depends on the weather. The revenues are shown below: no rain rain stock - small amount 25 20 stock - large amount 45 20 The probability of raining on the next Saturday is 0.3. Any leftover stock is worthless. What is the expected value of profit if she stocks a large amount? Provide two digits after the decimal. (Note: profit = revenue - cost. So the profit matrix from the revenue matrix given above is no rain rain stock - small amount 15 10 stock - large amount 25 0 Also, probability of no rain = 1 - probability of rain)

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