Tie and Choice - Newsvendor: One-Period Inventory, Step by Step

The pinned expected costs tie, so the rule chooses the smaller order.

highlighted = computed this step

Expected-cost tie

Order quantities 2 and 3 both have expected cost 2.

E[\text{cost at }q=2]=2

The tie rule chooses the smaller order quantity.

\text{choose smaller tied }q

The chosen quantity is 2.

q^*=2

This is a real tie in the pinned arithmetic, not a hidden unique optimum.

\text{tie stated explicitly}