How many boats to available for upcoming trip down the river

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The manager of a tour-boat company must decide how many boats to use available for an upcoming trip down the river. Before the trip, there is an expense for a $6000 non-refundable permit for each boat that she plans to take down the river. Each boat holds up to 8 customers, and every customer that signs up for the trip will pay $1600 to the tour company. In the past few years, demand for the trip has been 10 customers twice, 15 customers five times, and 20 customers once. According to expected value, should the owner plan on 1, 2 or 3 boats?

Reference no: EM132274906

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