The following table shows Bob’s Bookstore’s estimated demand for a new calendar. The bookstore needs to decide whether to order 100, 200, or 300 calendars for the start of the year. Each calendar costs the store $ 6 to purchase and can be sold for $ 14. The store can sell any unsold calendars back to its supplier for $ 2 each. Determine the number of calendars Bob’s Bookstore should order to maximize its expected monetary value.

Demand                                  Probability

100 ………………….            0.25

200 ………………….            0.40

300 ………………….            0.35