Question

javelin bakery in denton bakes delicious walnut-raisin bread every saturday. based on historical data, they believe a uniform distribution with a lower bound at 31 and upper bound at 45 describes the demand for this bread accurately.it costs javelin $3 to make one loaf of this bread and they charge $6 for it. if there is left-over bread at the end of the day, they lower the price to $2 and put it up for sale on sunday. any such bread always gets sold on sunday.based on this information, how many breads should javelin make on saturday morning?

Answer 1

Javelin Bakery should make 38 breads on Saturday morning.

To determine how many breads Javelin Bakery should make on Saturday morning, we need to consider the demand for the walnut-raisin bread and the cost of production.

Based on the information provided, the demand for the bread can be modeled by a uniform distribution with a lower bound of 31 and an upper bound of 45.

Since Javelin Bakery charges $6 for a loaf of bread and it costs them $3 to make one loaf, it is profitable for them even if they sell the bread for a lower price of $2 on Sunday.

To find the optimal number of breads to make, we need to calculate the expected value of the demand distribution.

The expected value of a uniform distribution is given by the formula: (lower bound + upper bound) / 2.

In this case, the expected value is (31 + 45) / 2 = 38.

Therefore, Javelin Bakery should make 38 breads on Saturday morning.