A Bakery Makes Fresh Donuts Every Morning

question 31

Multiple Choice

A bakery makes fresh donuts every morning.If any are left at the end of the day they are donated to a homeless shelter.The number of donuts that can be sold each day is uncertain and the bakery must decide early each morning,how many donuts to make that day.The bakery has created the following payoff table to summarize the situation. It estimates the following probabilities for the respective levels of demand. What is the expected value of making many donuts (A₃) ?

• A)150
• B)210
• C)190
• D)183.3

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Definitions:

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to AIDS if not treated.

Alcoholics

Individuals who suffer from alcoholism, a physical and psychological dependence on alcohol that negatively affects their health, relationships, and social functioning.

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An unexpected event involving motor vehicles that causes damage or injury.

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Individuals who either abstain from alcohol or consume it in such minimal amounts that it does not significantly affect their health or behavior.