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Question 3 . ( 1 5 Points ) Sweetie, a chocolate manufacturer, produces heart shaped chocolates for Valentine's Day. A 1 0 2 makes a

Question 3.(15 Points) Sweetie, a chocolate manufacturer, produces heart shaped chocolates for Valentine's Day. A102 makes a single ordering decision at the end of January every year for that year's Valentine's Day. The retail price for the chocolate is $ 8. Sweetie charges A102 $ 4 for the chocolate and a stock-out situation at A102 results in $ 3. Sweetie can sell an unsold chocolate to a 3^rd party for $ 1 per unit. If demand is a random variable with discrete distribution with the following probability distribution: a)(5 points) What is the optimal order quantity for A102? b)(10 points) What is the optimal expected profit?

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