Homework Soursen Apple Pie Company knows that the number of pies sold each
n Apple Pie Company knows that the number of pies sold each day varies from day to day. The owner believes that on 50% of the days she sells 100 pies. On another 25% of the days she sells 150 pies, and she sells 200 pies on the remaining 25% of the days. To make sure she has enough product, the owner bakes 200 pies each day at a cost of $2 each. Assume any pies that go unsold are thrown out at the end of the day. If she sells the pies for $5 each, find the probability distribution for her daily profit.
Solution
| No of pies X = | 100 | 150 | 200 |
| P(X=x) | 0.5 | 0.25 | 0.25 |
| profit | 0.5*100*(5-2) =150 | 0.25*150*(5-2)=112.5 | 0.25*(200)*(5-2)=150 |
