Homework Help is Here – Start Your Trial Now!
Math
Probability
Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 10% Expected profit 11 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. 28 16 20 24 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Number of apple pies b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? 20

Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 10% Expected profit 11 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. 28 16 20 24 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Number of apple pies b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? 20

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
See similar textbooks
icon
Related questions
Question
Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 11 10% 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. Expected profit 16 20 24 28 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? Number of apple pies 20
Transcribed Image Text:Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 11 10% 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. Expected profit 16 20 24 28 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? Number of apple pies 20
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON
SEE MORE TEXTBOOKS