Jumbo James Sells Hotdogs Out of a Cart for $3 $\begin{array}{ll}\text { Demand Per Day }&\text { Probability }\\100 & 0.50 \\200 & 0.30 \\300 & 0.20\end{array}$

question 3

Short Answer

Jumbo James sells hotdogs out of a cart for $3.00 each. The cost to purchase and prepare the hotdog is $1.15 each. James operates the small business with very few capital assets and has no place to store unsold hotdogs. For this reason, every evening he sells the unsold hotdogs to a local homeless shelter for $0.50 each. Jumbo James will choose one of the following options as a standard stocking plan: d₁ = 100; d₂ = 150; or d₃ = 200 hotdogs. On any weekday, the demand for hotdogs and the probability of selling them is estimated as follows:
$\begin{array}{ll}\text { Demand Per Day }&\text { Probability }\\100 & 0.50 \\200 & 0.30 \\300 & 0.20\end{array}$
a. Determine the expected value if Jumbo James stocks 200 hotdogs every day.
b. Determine the expected value if Jumbo James decides to stock 150 hotdogs every day.

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Definitions:

Charting By Exception

A documentation system in which only significant findings or exceptions to norms are recorded.

Flow Sheets

Documents used in healthcare and engineering to record and track dynamic processes, showing trends of patient data over time or the sequence of operations in a process.

Abnormal Findings

Observations made during diagnostic processes that indicate deviation from normal health states, potentially signaling the presence of disease or disorders.

Medication Administration Record

A document used to record all of the drugs that a patient has been prescribed and administered, typically in a hospital or healthcare setting.