Question

The daily earnings of an employee who works on a commission basis are given by the following probability distribution. Find the employee's expected earnings.

$ (0 25 50 75 100 125 150)
Probability (.07 .12 .17 .14 .28 .18 .04

Answer 1

78.5

Explanation:

correct

Answer 2

Answer: The employee's expected earnings is 78.5.

Explanation:

Since we have given that

$ Probability

0 0.07

25 0.12

50 0.17

75 0.14

100 0.28

125 0.18

150 0.04

We need to find the employee's expected earnings.

As we know the formula for "Expectation":

`E(x)=0* 0.07+25* 0.12+50* 0.17+75* 0.14+100* 0.28+125* 0.18+150* 0.04\\\\E(x)=0+3+8.5+10.5+28+22.5+6\\\\E(x)=78.5`

Hence, the employee's expected earnings is 78.5.