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

question 24

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?
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Demand } & 400 & 500 & 600 & 700 & 800 \\\hline \text { Probability } & .20 & .20 & .40 & .15 & .05 \\\hline\end{array}$$

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Definitions:

Adaptive Imperative

The inherent need for organisms or systems to adapt in order to survive and thrive in their environments.

Behavioral Organism

Refers to an entity or being, typically in a psychological context, considered in terms of its behavioral responses and interactions with its environment.

Action System

A conceptual framework in sociology that views social systems as composed of interrelated actions of individuals and groups.

Systemic Evolution

Describes the process of change and development within a system, particularly in the context of complex systems and societies.