Question
Claudia Pagn is the manager of a grocery store in Ponce. She now needs to replenish her supply of quenepas. Her regular supplier can provide
Claudia Pagn is the manager of a grocery store in Ponce. She now needs to replenish her supply of quenepas. Her regular supplier can provide as many cases as she wants. However, because these quenepas already are very ripe, she will need to sell them tomorrow and then discard any that remain unsold. Jean estimates that she will be able to sell 5, 6, 7, or 8 cases tomorrow. She can purchase the quenepas for $5 per case and sell them for $12 per case. Claudia now needs to decide how many cases to purchase. If Claudia is dubious about the accuracy of prior probabilities and so chooses to ignore them and use the Bayes decision rule, how many cases of quenepas should she purchase?
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