Problem

In the Walton Bookstore example with a discrete demand distribution, explain why an orde...

In the Walton Bookstore example with a discrete demand distribution, explain why an order quantity other than one of the possible demands cannot maximize the expected profit. (Hint: Consider an order of 190 calendars, for example. If this maximizes expected profit, then it must yield a higher expected profit than an order of 150 or 100. But then an order of 200 calendars must also yield a larger expected profit than 190 calendars. Why?)

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