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2. A city wants to promote annual marathon event by ordering and selling T-shirts. Sales price is $12.95, Cost is $5.00, and Salvage value
2. A city wants to promote annual marathon event by ordering and selling T-shirts. Sales price is $12.95, Cost is $5.00, and Salvage value is $0.50. From previous years' sales history the following data is available. Setup the payoff table with expected profit. How many T-shirts should they order and stock? Demand Probability 75,000 5% 80,000 20% 85,000 25% 90,000 30% 95,000 20%
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