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I Believe There Is A 60%60 \% Chance That Toilet Paper Is Going on Sale Tomorrow For Paper

Question 28

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I believe there is a 60%60 \% chance that toilet paper is going on sale tomorrow for $.75\$ .75 per roll and a 40%40 \% chance that it will not and cost $2\$ 2 per roll. Unfortunately, I have to place an order today. I have $10\$ 10 to spend on toilet paper.
a. Given my beliefs, how many rolls do I order?
b. If I receive insider information from the store that toilet paper will definitely be on sale, how many rolls do I order? (Suppose you can order fractions of a roll.)
c. If I receive insider information from the story that toilet paper will definitely not be on sale, how many rolls do I order?

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A. 8 rolls...

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