A newsstand receives its weekly order of View magazine on Monday and cannot reorder during the week. Each copy costs $1.80 and sells for $3.00. Unsold copies may be returned the following week for a $1.20 rebate. When the newsstand runs out of copies, the owner knows from experience that customers will purchase View magazine elsewhere for an average of two weeks; therefore, the estimated goodwill loss from stock-outs is $2.40 per unsatisfied customer. Demand has been remarkably constant, ranging from 7 to 10 copies per week, as shown below:

Demand (in copies)	7	8	9	10
Probability	0.30	0.40	0.20	0.10

Required: 1-a. Determine the optimal number of copies to keep in inventory. (Round your answers to 2 decimal places.)

1-b. Determine the expected profit. (Round your answer to 2 decimal places.)

2. What is the expected opportunity loss from keeping seven copies on hand? (Round your answer to 2 decimal places.)