Problem 26

Problem 26 - EV(24) = 24 *0.1=2.4 Profit Table 20 0.1 21...

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Chapter 12 Problem 26 Purchased Monday $2.00 per pound Sells $3.00 per pound At the end of the week sells $0.50 Demand/Pound Probability 20 0.1 21 0.2 22 0.3 23 0.3 24 0.1 Expected Values EV(20) = 20 *0.1=2 EV(21) = 21 *0.2= 4.2 EV(22) = 22 *0.3=6.6 EV(23) = 23 *0.3=6.9
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Unformatted text preview: EV(24) = 24 *0.1=2.4 Profit Table 20 0.1 21 0.2 22 0.3 23 0.3 24 0.1 20 20 18.5 17 15.5 14 21 20 21 19.5 18 16.5 22 20 21 22 20.5 19 23 20 21 22 23 21.5 24 20 21 22 23 24 From Expected Values: choose 23 pounds....
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