Farmco produces case of bananas what do you recommend to


FarmCo produces case of bananas. Each case costs $7 and sells for $16. Based on their historical data, daily demand for banana was realized as 400 cases or 450 cases or 500 cases If there are any cases not sold by the end of the day, they are sold to a food processing company for $4 a case. The probability that daily demand will be 400 cases is 0.30, the probability that daily demand will be 450 cases is 0.45, and the probability that daily demand will be 500 cases is 0.25. There is no cost when FarmCo does not satisfy customer demands

(a) Construct a decision table for this problem.

(b) What do you recommend to maximize the expected profit?

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