At the beginning of December, XYZ Company employed a contractorto cut enough trees to meet the expected demand for Christmastrees. They sell these trees to a local wholesaler in batches of100. Over the past few years, the demand has been as follows,Demand Probability 0 0% 1 4% 2 6% 3 10% 4 23% 5 17% 6 14% 7 12% 90%57% None of above 96% 80% 8 9% 9 5%
If it costs $12 to cut and trim a tree that sells for $28, howmany trees should the company cut down?
What is the profit (loss) if the company decides to cut 400trees, and the demand is 200?
What is the expected profit (loss) if the company decides to cut400 trees?
