Short Answer
I believe there is a chance that toilet paper is going on sale tomorrow for per roll and a chance that it will not and cost per roll. Unfortunately, I have to place an order today. I have to spend on toilet paper.
a. Given my beliefs, how many rolls do I order?
b. If I receive insider information from the store that toilet paper will definitely be on sale, how many rolls do I order? (Suppose you can order fractions of a roll.)
c. If I receive insider information from the story that toilet paper will definitely not be on sale, how many rolls do I order?
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A. 8 rolls...View Answer
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