Question

A bakery would like you to recommend how many loaves of its famous marble rye bread to bake at the beginning of the day. Each loaf costs the bakery ?$4.004.00 and can be sold for ?$7.007.00. Leftover loaves at the end of each day are donated to charity. Research has shown that the probabilities for demands of? 25, 50, and 75 loaves are 3030?%, 2525?%, and 4545?%, respectively. Make a recommendation for the bakery to bake? 25, 50, or 75 loaves each morning.

Answer 1

To determine how many loaves of marble rye bread to bake, calculate the expected value for each possible demand.

Step-by-step explanation:

To recommend how many loaves of marble rye bread to bake, we can use the concept of expected value. The expected value is calculated by multiplying each possible demand by its respective probability, and then summing up these values. For this problem, we have three possible demands: 25, 50, and 75 loaves. The probabilities for these demands are 30%, 25%, and 45% respectively.