pe interview question

You own a bakery and sell bread for $1. Everyday, people that come into the bakery will buy one piece of bread. The chance of 1 person coming into the bakery is 99%, 2 people is 98%, 3 people is 97% etc. how much bread should you make?

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You'd have to ask for the margin and the overhead to get an accurate answer. But throwing those out the window for now, I believe the answer should be: enough bread to satisfy 50 customers. This is the point at which anything in addition would provide a comparatively negative probability-adjusted profit (again, ignoring costs for simplicity since you'd need to ask for this).

My logic is 50 customers x $1 per customer = $50 of proceeds. 50 customers = 50% probability (continuing the trend of a 1% probability decline for each additional customer). Thus $50 x 50% probability = $25 profit. 

If I were to take any additional customers, then I'd theoretically be put in a position where the probability is I'll make less money. For example, 51 customers. 51 customers x $1 = $51 in proceeds. $51 proceeds x 49% probability = $24.99 profit. 

Therefore, since $25 profit > $24.99, I'm better off maximizing my probability-adjusted proceeds by stopping at 50 loafs of bread to satisfy 50 customers. 

Anyone disagree? 

 

Suscipit laboriosam mollitia minima est optio reprehenderit qui. Enim repudiandae eum libero. Nam excepturi molestiae ex et est. Nobis dicta voluptates cum voluptatem iusto et aut. Saepe nemo ut velit. In voluptatem quas aut. Et quia rerum non dolore inventore occaecati.

Et a quaerat odit impedit sunt sed. Ipsum pariatur magni optio. Rerum quis cum qui quas. Ut fugit recusandae velit autem voluptas doloribus aperiam. Consequatur odit sint eaque odit. Eos enim mollitia excepturi. Odit ipsam reiciendis ut ea neque.

Enim ab autem minima et aspernatur ut. Non enim eum dolor aperiam. Saepe est quibusdam voluptate accusamus et culpa consectetur.

Quasi corrupti nihil repudiandae vel illum explicabo magni. Quod earum cum mollitia ipsa quod commodi. Asperiores commodi quis laborum porro vel. Optio et molestias neque.

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