The following table shows Bob’s Bookstore’s estimated demand for a new calendar. The bookstore needs to decide whether to order 100, 200, or 300 calendars for the start of the year. Each calendar costs the store $6 to purchase and can be sold for $14. The store can sell any unsold calendars back to its supplier for $2 each. Determine the number of calendars Bob’s Bookstore should order to maximize its expected monetary value.

Demand Probability 100 0.25 200 0.40 300 0.35 AppendixLO1