Orders for clothing from a particular manufacture for this year\'s Christmas sho

Question

Orders for clothing from a particular manufacture for this year's Christmas shopping season must be placed in February. The cost per unit for a particular address is $20 while the anticipated selling price is $50. Demand is projected to be 50, 60, or 70 units. There's a 40% chance that a man will be 50 units, 50% chance that a man will be 60 units, and a 10% chance that a man will be 70 units. The company believes that any leftover goods will have to be scrapped. How many units should be ordered in February?

think I know how to work this out but doubting myself lol

Explanation / Answer

Expected number of units to be sold = sum of (items x probability)

= 50x0.4 + 60x0.5 + 70x0.1

= 57

So, the company should order 57 units

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