How many cases be produced to maximize expected profit


Daily sales of a perishable food product are known to be either 8,9,10,or 11 cases with probabilities 0.1,0.3,0.4 and 0.2, respectively. The cost of producing one of these is $4 while the selling price is $7. Cases not sold during the day are sold to a food processing plat for $1 each, but cases can only be produced in the morning before the store opens. If you wish to maximize expected profit, how many cases should be produced each day?

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Basic Statistics: How many cases be produced to maximize expected profit
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