If each Jerk Store location is acting independently,what is their expected profit if they order the optimal quantity?

A) $13,521
B) $13,840
C) $16,680
D) $16,789

Question

If each Jerk Store location is acting independently,what is their expected profit if they order the optimal quantity?A) $13,521B) $13,840C) $16,680D) $16,789

Harsadbhai bhatt · Accepted Answer

Final Answer : B, Explanation :  The expected profit is calculated using the newsvendor model, which considers the cost, selling price, and demand distribution. The optimal order quantity maximizes expected profit, which is closest to $13,840.

If each Jerk Store location is acting independently,what is their expected profit if they order the optimal quantity?

A) $13,521
B) $13,840
C) $16,680
D) $16,789

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