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A newsstand operator assigns probabilities to the demand for Fine magazine: . Event: Demand 1 0 copies 1 1 copies 1 2 copies 1 3

A newsstand operator assigns probabilities to the demand for Fine magazine: .
Event: Demand
10 copies 11 copies 12 copies 13 copies 14 copies
Probability of Event
0.100.150.200.250.351.00
Issues sell for 50 cents and cost 30 cents.
a. If the operator can return and cost 30 cents.
b. If the operator cannot return any unsold copies for full credit, how many should be ordered?
c. What is the optimum expected profit in (b)?

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