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Question
The campus bookstore sells stadium blankets embroidered with the university crest. The blankets must be purchased in bundles of one dozen each. Each blanket in the bundle costs $65, and will sell for $90. Blankets unsold by homecoming will be clearance priced at $20. The bookstore estimates that demand patterns will follow the table below.
a. Build the decision table.
b. What is the maximum expected value?
c. How many bundles should be purchased?
| Demand level | Probability |
| 1 bundle | 10 percent |
| 2 bundles | 30 percent |
| 3 bundles | 50 percent |
| 4 bundles | 10 percent |
Answer
This answer is hidden. It contains 243 characters.
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