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Downtown Health Clinic needs to order influenza vaccines for the next flu season. The clinic charges its patients $15.00 per vaccination and each dose of
Downtown Health Clinic needs to order influenza vaccines for the next flu season. The clinic charges its patients $15.00 per vaccination and each dose of vaccine costs the clinic $4.00 to purchase. The Centers for Disease Control has a long-standing policy of buying back unused vaccines for $1.00 per dose. The clinic estimates the following probability distribution for the season's demand. a. How many vaccines should the clinic order to maximize its expected profit? b. The clinic is trying to determine if it should participate in a new federal program in which the cost of each dose is reduced to $2.00. However, to participate in the program, the clinic can charge no more than $10.00 per vaccine. On strictly a profit-maximizing basis, should the clinic agree to participate
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