Consider a new anthology of Greek poetry from the 1930s. The publisher is selling the book for $82.50, and Dan plans a 25% gross margin on this book, i.e., the price will be $110. Dan estimates that demand over the next year has a Poisson distribution with mean 2.5. At the end of the year, Dan will sell leftover books to a discounter and probably will only get 20% of the wholesale price for each copy.

Suppose Dan orders four copies of the poetry book. What are Dan's expected sales? (Round your final answer to the nearest whole number. Use the Poisson Loss Function Table)

	1
	2
	4
	8

2.

Consider a new anthology of Greek poetry from the 1930s. The publisher is selling the book for $82.50, and Dan plans a 25% gross margin on this book, i.e., the price will be $110. Dan estimates that demand over the next year has a Poisson distribution with mean 2.5. At the end of the year, Dan will sell leftover books to a discounter and probably will only get 20% of the wholesale price for each copy.

How many copies of the poetry book should Dan order to maximize his expected profit? (Use the Poisson Distribution Function Table.)