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Past demand data for Avalon Bakery's famous rye bread has shown that the probabilities for daily demands of 25, 50, and 75 loaves are 35%, 25% and 40% respectively.
a. What is the expected demand for Avalon Bakery's rye bread?
b. What is the standard deviation for demand for Avalon Bakery's rye bread?
c. Avalon Bakery would like you to recommend how many loaves of rye bread to bake at the beginning of the day. Each loaf costs the bakery $3.00 and can be sold for $6.00. Leftover loaves are sold next day for $0.50. Avalon can bake 50 or 75 loaves each morning.
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