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The circulation manager of The New York Times in State College, PA is trying to decide how many copies of the upcoming Sunday edition of the paper to order so as to meet the demand of local customers. Each copy of the newspaper costs $2.00 and is sold for $3.00. On Tuesday (following the weekend the newspapers are printed), all unsold copies will be returned to the distributor for a refund of $1.80 per copy. The owner believes that the number of papers she can sell on a typical Sunday is 21,100. She wants to decide how many copies of The New York Times to order so as to maximize expected profit from the sale of this particular newspaper. Develop a spreadsheet model and a corresponding data table to find the best order quantity among the given alternatives
The probability of Event 1 is P and the probability of Event 2 is (1-p),for what values of P would you choose A?B?C? Values in the table are payoffs. Choice /Event Event 1 Event2
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