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 byDemandProbability51110% 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 anearby soup kitchen for 80 cents each. Assume no goodwill cost.Expected profit16 20 24 2824% 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 pies20

The expected profit under a probability demand distribution is calculated by multiplying the profit…

Answered: Problem 20-8 (Algo) Lakeside Bakery…

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...

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Suppose a neighborhood grocery store buys 5 containers of skim milk at the wholesale price of $11 per container and sells it for $22 per container. After the expiration date, unsold milk is removed from the shelves and the grocer receives a credit from the distributor equal to three-fourths of the wholesale price. If the probability distribution of the variable is X and the number of containers sold from this lot is x f(x) 0 1/15 1 2/15 2 2/15 3 3/15 4 4/15 5 3/15 Calculate the expected utility. (Round to two decimal places)
Need help with this probability question.
A financial analyst is examining the relationship between stock prices and earnings per share. She chooses fifteen publicly traded companies at random and records for each the company's current stock price and the company's earnings per share reported for the previous year. Her data are given below, with x denoting the earnings per share from the previous year and y denoting the current stock price (both in dollars). A scatter plot of her data is shown in Figure 1.

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