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A television dealer finds that the cost of a TV in stock for a week is Rs 30 and the cost of unit shortage is
A television dealer finds that the cost of a TV in stock for a week is Rs 30 and the cost of unit shortage is Rs 70. For one particular model of television the probability distribution of weekly sales is as follows:
Weekly Sales: 0 1 2 3 4 5 6
Probability: .10 .10 .20 .25 .15 .15 .05
How many units per week should the dealer order?
Also, find EVPI.
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