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You work for a small car dealership. You must decide how many new cars (of the latest model) to order. Because of shipping costs, orders

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You work for a small car dealership. You must decide how many new cars (of the latest model) to order. Because of shipping costs, orders must be placed in multiples of 10. You can either order 10,20,30 or 40 cars. Each car costs 45k if you order 10 - for quantities greater than 10 , you receive a discount of 5% per additional multiple of 10 ordered ( 20 cars would be 5%,30 would be 10%, etc). The cars can be sold for $75K each. Any that are left unsold can be auctioned after the season is over for $25k. You have received a forecast that the probability that you will sell 5 cars is 10%,15 cars is 35%,25 cars is 40% and 35 cars is 15%. Using a payoff table (in thousands) to provide the payoffs, how many cars should you order based on the expected value approach and what is the expected value

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