A Hot Dog Vendor Must Decide on Monday How Many

question 25

Multiple Choice

A hot dog vendor must decide on Monday how many hot dogs to have available for the coming Saturday's football game.Each hot dog costs the vendor $3.00 and is sold for $5.00.After the game any unsold hot dogs are discounted and sold to the university cafeteria for $1.75.The vendor believes that the demand for hot dogs follows the probability distribution shown below: The vendor's cost of overestimating demand,C_o,is

• A)$5.00.
• B)$3.00.
• C)$1.75.
• D)$1.25.