2. Ozark Sportswear can purchase a special shipment of wool caps for $1.85 each. The caps can be sold for $4.95 during the fall season, but any that have not been sold by Christmas will be reduced to $1.50. The following probability distribution has been estimated for demand for these caps prior to Christmas. Caps must be purchased in dozens. Assume that any caps unsold by Christmas can be sold at the lower price.

How many caps should Ozark purchase?

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DEMAND (D) (DOZENS) 4567 PROBABILITY THAT DEMAND WILL EQUAL THIS NUMBER [P(d)] 0.05 0.15 DEMAND (D) (DOZENS) 068 PROBABILITY THAT DEMAND WILL EQUAL THIS NUMBER [P(d)] .8 0.15 9 0.10 0.25 10 0.05 0.25