13. Daily demands for loaves of bread at a grocery store are specified by the following probability...
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13. Daily demands for loaves of bread at a grocery store are specified by the following probability distribution:
The store buys a loaf for 55 cents and sells it for $1.20 each. Any unsold loaves at the end of the day are disposed of at 25 cents each. Assume that the stock level is restricted to one of the demand levels specified for Pn'
(a) Develop the associated decision tree.
(b) How many loaves should be stocked daily?
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