We assume that the table gives the possible demands and
their probability on any day. Therefore, the expected demand (ED) is the sum of
the following.
1500 (0.2) = 300
1200 (0.5) = 120
1600 (0.15) = 240
1400 (0.25) = 350
1600 (0.20) = 320
1000(0.06) = 60
1500 (0.04) = 60
ED
= 1450
\ The production target should be 1450
+ 145 =1595 Choice (A)