The National Sales Manager for "I Colored This" (ICT) T-Shirts

question 29

Multiple Choice

The national sales manager for "I colored this" (ICT) T-shirts provides all salespersons with the payoff table shown next, giving the estimated profit when a retailer purchases from one to four dozen T-shirts. The probability of demand for each state of nature is also shown. How many dozen "I colored this" T-shirts should be purchased to yield the highest expected monetary value?

• A) 1
• B) 2
• C) 3
• D) 4