Score: 0.25 of 1 pt HW 85%, 4.25 of 5 pts A bakery would like you to recommend h

Question

Score: 0.25 of 1 pt HW 85%, 4.25 of 5 pts A bakery would like you to recommend how many loaves of its famous marble rye bread to bake at the beginning of the day. Each loaf costs the bakery $3.00 and can be sold for $7.00. Leftover loaves at the end of each day are donated to charity. Research has shown that the probabilities for demands of 25, 50, and 75 loaves are 30%, 20%, and 509, respectively. Make a recommendation for the bakery to bake 25, 50, or 75 loaves each moming Find the expected monetary value when baking 25 loaves EMV.(Type an integer or a dermal.)

Explanation / Answer

Ans:

Profit from one loave=7-3=4

EMV 25 loaves = 0.30 x 4 x 25 = 30
EMV 50 loaves = 0.20 x 4 x 50 = 40
EMV 75 loaves =0.50 x 4 x 75 = 150

As,EMV is highest for 75 loaves,so bakery is recommended to make 75 loaves.

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