Homework Help is Here – Start Your Trial Now!
Math
Probability
Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 10% Expected profit 11 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. 28 16 20 24 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Number of apple pies b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? 20

Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 10% Expected profit 11 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. 28 16 20 24 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Number of apple pies b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? 20

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
See similar textbooks
icon
Related questions
Question
Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 11 10% 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. Expected profit 16 20 24 28 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? Number of apple pies 20
Transcribed Image Text:Problem 20-8 (Algo) Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution, based on past experience, given by Demand Probability 5 11 10% 16% Each apple pie costs the bakery $14.75 to make and is sold for $40. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 80 cents each. Assume no goodwill cost. Expected profit 16 20 24 28 24% 24% 16% 10% a. If the company decided to bake 16 apple pies each day, what would be its expected profit? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Based on the demand distribution above, how many apple pies should the company bake each day to maximize its expected profit? Number of apple pies 20
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
SEE MORE TEXTBOOKS