i. For each purchasing and demand option, calculate the profit and loss.

		Demand
		20	40	60
	Probability	0.4	0.4	0.2
Purchase	35	Value 1	Value 2	Value 3
	60	Value 4	Value 5	Value 6

Value 1: Value 2: Value 3: Value 4: Value 5: Value 6:

ii. Using the expected value approach determine which purchasing option to adapt to achieve the maximum expected profit. Show your workings.

Answer both i) and ii) in the text box below-