A bakery would like you to recommend how many loaves of its famous marble rye br

Question

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 $2.00 and can be sold for $5.00. 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 50%, respectively. Make a recommendation for the bakery to bake 25, 50, or 75 loaves each morning Find the expected monetary value when baking 25 loaves. EMV-sd (Type an integer or a decimal ) Find the expected monetary value when baking 50 loaves. EMV= (Type an integer or a decimal.) Find the expected monetary value when baking 75 loaves. EMV-s (Type an integer or a decimal ) Make a recommendation for the bakery to bake 25, 50, or 75 loaves each moming The bakery should bake 50 loaves of bread every morning.

Explanation / Answer

1) EMV =sale -cost =0.3*(25*5-25*2)+0.2*(25*5-25*2)+0.5*(25*5-25*2)=75

2)EMV =0.3*(25*5-50*2)+0.2*(50*5-50*2)+0.5*(50*5-50*2) =112.5

3)EMV=0.3*(25*5-75*2)+0.2*(50*5-75*2)+0.5*(75*5-75*2) =125

the bakery should bake 75 loaves of bread

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