Exercise 1. Assume you are a manager and need to order paper towels. According to your records, for the past 10 days, he demands has been as follows: Demand for Paper Towels 40 30 Number of days with these Sales 4 6 You buy paper towels for $1.45 each and sell them for $1.85. Unsold paper towels are used only in your house. Find your expected value for your profit or loss if you order 30 paper towels. (1) Identify the two scenarios: "the demand for paper towels is dj - 40 or the demand for paper towels is d2". rea (2) Based on the demands: The probability of the demand for di paper towels is P1. Find Pl. ngi (3) Based on the demands: The probability of the demand for d2 paper towels is P2. Find P2. (4) If the demand is for di paper towels, then you will still only sell d2 amount of paper towels and the profits will be p1- Find p1- Ch (5) If the demand is for d2 paper towels, then the profits will be p2. Find p2. PURE FI di d2 P1 P2 P1 P2 E1 = PIPI E2 = P2P2 SECRE (6) Complete the following table: 30 0.4 12 (7) Find the expected value and determine if this is a profit or a loss. E1 + E2