A Retailer Is Deciding How Many of a Certain Product

Multiple Choice

A retailer is deciding how many 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. The conditional value for the decision alternative "Stock 3" and state of nature "Sell 1" is

A) 1.4 units
B) $1 profit
C) $25 profit
D) $-8 profit
E) none of the above