A small market orders copies of a certain magazine for its magazine rack each week. Let X

Question:

A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with pmf

Suppose the store owner actually pays $2.00 for each copy of the magazine and the price to customers is $4.00. If magazines left at the end of the week have no salvage value, is it better to order three or four copies of the magazine?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...