Question
6. Greenwood Groceries buys fresh fruit daily for $10 a crate. Crates sold the same day bring $15 profit contribution, each. Crates that are
6. Greenwood Groceries buys fresh fruit daily for $10 a crate. Crates sold the same day bring $15 profit contribution, each. Crates that are not sold in a day are sold later as animal food for $2.50 each. The demand for fruit fluctuates, according to the following distribution (data collected over the last 300 days): Demand (Number of Crates) 10 11 12 13 Number of Days 120 90 75 15 Total-300 a) How many crates should the store order if Greenwood wants to maximize profit from selling fruit? Use an expected-value approach. b) What will be the average daily profit?
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