A small market orders copies of a certain magazine for its magazine rack each week. Let X = demand for the magazine, with the following pmf:
x 1 2 3 4 5 6
f(x) 1/16 1/16 4/16 4/16 3/16 3/16
a. What is the expected profit if three magazines are ordered? (Round your answer to two decimal places.)
b. What is the expected profit if four magazines are ordered? (Round your answer to two decimal places.)
c. How many magazines should the store owner order?
A. 3 magazines
B. 4 magazines
