Question: Every morning a baker must decide how many cakes to bake. Cakes have a shelf life of only one day and unsold cakes have no salvage value. Cakes costs $11 to make and sell at retail for $28. The baker knows that demand for cakes follows this distributions:
| x |
prob(x) |
| 13 |
0.03 |
| 14 |
0.06 |
| 15 |
0.19 |
| 16 |
0.32 |
| 17 |
0.19 |
| 18 |
0.12 |
| 19 |
0.04 |
| 20 |
0.03 |
How many cakes should the bakes make if he wants to maximize his expected profit.