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Layla's Bakery daily stocks five gourmet fancy fruit-topped cakes. All the cakes that are not sold during the day are thrown away, and the bakery
Layla's Bakery daily stocks five gourmet fancy fruit-topped cakes. All the cakes that are not sold during the day are thrown away, and the bakery restocks the next day with new cakes, bringing the in-stock level up to five at the beginning of each day. If daily demand is greater than the five cakes in stock the bakery loses sales. The special cake sells for $42 and costs the store $16. The probability distribution of daily demand for the cake is as shown below. a) What is the average (mean) demand for the cake? (2 decimal places) b) What is the expected (mean) daily revenue from the sale of the cake? (2 decimal places) c) What is the expected (mean) daily profit from the sale of the cake? (2 decimal places) d) On average, how much profit is lost each day because the cake is not available when demanded? (2 decimal places)
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