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A seasonal product has a selling price of $100 during the selling season. At the end of the season, the manufacturer can sell it at
A seasonal product has a selling price of $100 during the selling season. At the end of the season, the manufacturer can sell it at a discounted price of $25. The total cost of this product to the manufacturer is $50. Based on historical sales data, the manufacturer estimates the demand for this product for the entire season as follows: Demand (in thousands) 1 2 3 4 5 6 probability 0.1 0.15 0.20 0.25 0.2 0.1 1- How many products should the manufacturer produce to maximize the expected profit? 2- What is the expected profit corresponding to the optimum amount of production
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