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A retailer is deciding how many of a certain product to stock. The historical probability distribution of sales for this product is 0 units, 0.1;
A retailer is deciding how many of a certain product to stock. The historical probability distribution of sales for this product is 0 units, 0.1; 10 unit, 0.2; 20 units, 0.3, and 30 units, 0.4. The product costs $18 per unit and sells for $45 per unit. Any unsold units will be discarded. The conditional value for the decision alternative "Stock 30" and state of nature "Sell 10" is
a.
$-09 profit (loss of $90)
b.
1.4 units
c.
none of the answers is correct
d.
$-1 profit (loss of $1)
e.
-$190 profit (loss of $190)
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