Jumbo James Sells Hotdogs Out of a Cart for $3

question 23

Essay

Jumbo James sells hotdogs out of a cart for $3.00 each.His cost to purchase and prepare the hotdog is $1.15 each.He 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 hot dogs.On any weekday, the demand for hot dogs and the probability of selling them is estimated as follows:

a.Determine the expected value if Jumbo James stocks 200 hot dogs every day.
b.Determine the expected value if Jumbo James decides to stock 150 hot dogs every day.

---

Definitions:

Employees

Employees are individuals who work for a business or organization, typically in return for compensation, and are subject to the employer's control in terms of how work is done.

Apply

To make a formal request or submission for something, such as a job, program, or permission.

Scope of Employment

The range of activities and duties that an employee is reasonably expected to perform as part of their job.

Employer

An individual or organization that hires and compensates personnel for their services or work.