Question
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
Demand | 7 | 12 | 19 | 24 | 29 | 34 | ||||||
Probability | 5 | % | 15 | % | 31 | % | 24 | % | 15 | % | 10 | % |
Each apple pie costs the bakery $9.30 to make and is sold for $35. Unsold apple pies at the end of the day are purchased by a nearby soup kitchen for 70 cents each. Assume no goodwill cost.
a. If the company decided to bake 19 apple pies each day, what would be their expected profit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The answer is not $269.60 or $2.86.
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