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Problem: David buys fruits and vegetables wholesale and retails them at Davids Produce on La Vista Road. One of the more difficult decisions is the amount of bananas to buy. Let us make some simplifying assumptions, and assume that David purchases bananas once a week at 10 cents per pound and retails them at 40 cents per pound during the week. Bananas that are more than a week old are too ripe and are sold for 5 cents per pound. Assume that the demand for the bananas is uniformly distributed in the interval (5,25).
Required:
Question: What is the expected cost of David in a week if he buys 7 pounds of banana?
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