Suppose that you are going to sell cola at a football ga
Question and Solution
Suppose that you are going to sell cola at a football game and must decide in advance how much to order. Suppose that th
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Suppose that you are going to sell cola at a football game and must decide in advance how much to order. Suppose that the demand for cola at the game, in liters, has a continuous distribution with p.d.f. f (x). Suppose that you make a profit of g cents on each liter that you sell at the game and suffer a loss of c cents on each liter that you order but do not sell. What is the optimal amount of cola for you to order so as to maximize your expected net gain?
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