A bakery would like you to recommend how many loaves of its famous marble rye bread...

90.2K

Verified Solution

Question

Basic Math

A bakery would like you to recommend how many loaves of itsfamous marble rye bread to bake at the beginning of the day. Eachloaf costs the bakery $2.00 and can be sold for $7.00. Leftoverloaves at the end of each day are donated to charity. Research hasshown that the probabilities for demands of 25, 50, and 75 loavesare 35%, 20%, and 45%, respectively. Make a recommendation for thebakery to bake 25, 50, or 75 loaves each morning.
Find the expected monetary value when baking 25 loaves.
Find the expected monetary value when baking 50 loaves.
Find the expected monetary value when baking 75 loaves.

Answer & Explanation Solved by verified expert

4.2 Ratings (808 Votes)

Let Event A Bakery sells 25 loaves PA 035 Let Event B Bakery sells 50 loaves PB 020 Let Event C Bakery sells 75 loaves PC 045 Cost of 1 loaf 2 Selling price of 1 loaf 7 Profit earned on 1 loaf 5 Loss on each loaf that is donated to charity 2 Expected monetary value when baking 25 loaves Profit earned on selling 25 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member