Question
3-26 Megley Cheese Company is a small manufacturer of several different cheese products. One of the products is a cheese spread that is sold to
3-26 Megley Cheese Company is a small manufacturer of
several different cheese products. One of the products
is a cheese spread that is sold to retail outlets.
Jason Megley must decide how many cases of cheese
spread to manufacture each month. The probability
that the demand will be six cases is 0.1, seven cases
is 0.3, eight cases is 0.5, and nine cases is 0.1. The
cost of every case is $45, and the price that Jason
gets for each case is $95. Unfortunately, any cases
not sold by the end of the month are of no value, due
to spoilage. How many cases of cheese should Jason
manufacture each month?
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