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Bevs Bakery Bevs Bakery specializes in sourdough bread. Early each morning, Bev must decide how many loaves to bake for the day. Each loaf costs
Bevs Bakery Bevs Bakery specializes in sourdough bread. Early each morning, Bev must decide how many loaves to bake for the day. Each loaf costs $1.25 to make and sells for $3.50. Bread left over at the end of the day can be sold the next day for $1.00. Past data indicate that demand is distributed as follows: Number of Loaves Probability 15 0.02 16 0.05 17 0.10 18 0.16 19 0.28 20 0.20 21 0.15 22 0.04 Construct a payoff table to solve the question. The expected demand is [ Select ] . The optimal quantity for Bev to bake each morning using expected values is [ Select ] . Baking according to the expected demand [ Select ] an optimal strategy. The EVPI is [ Select ] The optimal quantity for Bev to bake if the unsold loaves are sold the next day but are donated to a food bank is [ Select ]
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