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Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution based on past experience,
Lakeside Bakery bakes fresh pies every morning. The daily demand for its apple pies is a random variable with (discrete) distribution based on past experience, given by
Each apple pie costs the bakery $6.75 to make and is sold for $17.99. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 99 cents each. Assume no goodwill cost.
- If the company decided to bake 15 apple pies each day, what would be its expected profit?
- Based on the demand distribution given, how many apple pies should the company bake each day to maximize its expected profit?
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