Single$-$Period Model

Example $17-$ A discrete example to introduce newsvendor model $-$ Suppose you want to sell Christmas trees during the month of December. You have one opportunity only to place an order and go pick up the stock of trees you will attempt to sell. Suppose you purchase the trees for $$70$ each and sell them $($before Christmas$)$ for $$100$ each. After Christmas you can sell them to a mulching company at $$5$ each. Though you cannot anticipate the demand, you have accepted the following probability distribution as a model to describe the demand probabilistically:

$\backslash$table$[[$DEMAND$,$PROBABILITY$],[50,\frac{1}{3}$