Daily Sales of Bread by Salvador Monella's Baking Company Follow

question 61

Essay

Daily sales of bread by Salvador Monella's Baking Company follow the historical pattern shown in the table below. It costs the bakery 50 cents to produce a loaf of bread, which sells for 95 cents. Any bread unsold at the end of the day is sold to the parish jail for 25 cents per loaf. Construct the decision table of conditional payoffs. How many loaves should Sal bake each day in order to maximize contribution?
$$\begin{array} { | c | c | c | c | c | c | } \hline \text { Demand } & 400 & 500 & 600 & 700 & 800 \\\hline \text { Probability } & .20 & .20 & .40 & .15 & .05 \\\hline\end{array}$$

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Definitions:

Empiricism

A philosophical standpoint emphasizing that knowledge comes primarily from sensory experience and evidence gathered through experimentation.

Innate Categories

refer to the basic, naturally occurring classifications that the human mind is believed to automatically and instinctively recognize and sort information into.

Taste Buds

Sensory organs located on the tongue, allowing for the perception of different tastes such as sweet, sour, bitter, and salty.

Screening Service

A system or process designed to identify individuals who may have a particular disease, condition, or risk factor.