# 3. A beekeeper plans to sell honey at the Lehigh University Thursday local farmers' market. The beekeeper makesa net profit of \$40 per kilogram on honey she sells, but she incurs a net loss of \$10 per kilogram on any honey shebrings to the market that she doesn't sell. The (random) demanded quantity X for honey at the farmers' market(in kilograms) is uniform on (0,5). Let k be the amount of honey (in kilograms) that the beekeeper brings. (Tobe clear, if the demand meets or exceeds k, she sells all of the honey she brings. If the demand falls short ofk, then she sells an amount of honey equal to the quantity demanded, and she incurs a loss on the amount shebrings beyond the demand.) What should k be (that is, how much honey should she bring) for the beekeeper tomaximize her expected earnings from the farmers' market?

Question
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3.

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Step 1

The distribution of demand follows uniform (0, 5)

Step 2

There are two cases: k>d and kd

Step 3

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