Martin Stevens, the manager of a downtown stationary shop must decide how many cartons of ...

      Martin Stevens, the manager of a downtown stationary shop must   decide how many cartons of Valentines cards to order for the 2019 holiday.   Martin has estimated demand will be 40, 80, or 120   cartons and   has to decide whether to order 40, 80, or 120 cartons from his supplier. Each   carton costs the shop $4.25 and will be sold for $10.00. Any unsold cartons   will be sent back to the supplier and Martin will receive a $2.00 refund for   each carton that he returns to the supplier.   Past sales   and some additional research have given the following probability estimates   for demand levels:   40 cartons,   0.30; 80 cartons, 0.40; 120 cartons, 0..30.   a. Construct   a payoff table for this problem (alternatives matching the demand levels.)   b. Calculate   the Expected Value for each alternative.   c. Based on   your calculations, how many cartons of cards should Martin order from his   supplier?