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Prairie Flowers sells fresh flowers at a curbside outlet. The owners know the expected level of daily sales as well as the variability of daily

Prairie Flowers sells fresh flowers at a curbside outlet. The owners know the expected level of daily sales as well as the variability of daily sales. They are trying to decide how large of a supply to provide at the outlet each day. Too few flowers results in lost sales, too many flowers results in spoilage (or wilting). This is an example of
pure risk
indirect loss
credit risk
the costliness of risk

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