A Retailer Is Deciding How Many Units of a Certain

question 68

Multiple Choice

A retailer is deciding how many units of a certain product to stock.The historical probability distribution of sales for this product is 0 units,0.2;1 unit,0.3;2 units,0.4,and 3 units,0.1.The product costs $8 per unit and sells for $25 per unit.What is the largest conditional value (profit) in the entire payoff table for this scenario?

• A)$-24 profit
• B)$-8 profit
• C)$17 profit
• D)$51 profit
• E)$75 profit

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Definitions:

Restaurants

Establishments specifically designed and equipped to prepare, sell, and serve food and beverages to customers.

Schools

Institutions designed for educating students, typically ranging from primary to higher education levels.

Nontraditional Places

signifies unconventional or unusual locations or venues that deviate from the norm.

Restaurants

Restaurants are establishments where meals are prepared and served to customers in exchange for money.