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Working on some practice questions and not sure what equation to use to solve. Flora Flowers orders flowers every day from a large wholesaler. She
Working on some practice questions and not sure what equation to use to solve.
Flora Flowers orders flowers every day from a large wholesaler. She pays $3.00 a bunch and after arranging them, sells them for $15.00 an arrangement. Flora has estimated demand and probabilities with the table below.
Demand | Probability |
25 | 0.15 |
50 | 0.25 |
75 | 0.35 |
100 | 0.20 |
125 | 0.05 |
If Flora's goal is to maximize expected daily profit, what would Flora's profit be, in the long run with the order size of 75?
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