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A Retailer Is Deciding How Many Units of a Certain

Question 68

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A retailer is deciding how many units of a certain product to stock.The historical probability distribution of sales for this product is 0 units,0.2;1 unit,0.3;2 units,0.4,and 3 units,0.1.The product costs $8 per unit and sells for $25 per unit.What is the largest conditional value (profit) in the entire payoff table for this scenario?


A) $-24 profit
B) $-8 profit
C) $17 profit
D) $51 profit
E) $75 profit

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