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Toy Story: You are the owner of a toy stand in a mall and you need to decide how many units of a particular toy you will order to sell at your stand. You knowthat the demand will either be 20, 40, 60, 80 or 100 with equal likelihood. The unitcost of the toy is $4 and every unit you sell earns revenue of $10 per unit.Leftover units cannot be salvaged or re-sold and are worthless. You have onlyone opportunity to buy in anticipation of demand. Because the toys are shippedin batches, you must order in units of 20.a. For each combination of your choice (order quantity) and demandrealization, find your profit. Construct a decision table with the profits youfind.b. How many toys should you order to achieve highest expected profit?Hint: you only need to order one of the demand realizations. Hence, both thealternatives and the events are the same, namely the five possible demands. Theoutcome of any combination of your order quantity and the demand is your profit.
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