Question

A lab orders a shipment of 100 rats a​ week, 52 weeks a​ year, for experiments that the lab conducts. Prices for each weekly shipment of rats follow the distribution below. How much should the lab budget for next​ year's rat orders assuming this distribution does not change.​ (Hint: find the expected​ price.)

Answer 1

Then this is the expected price for the weekly shipment of rats =13.25

Explanation:

Suppose the price for the shipment of rats are as follow

price 10 12.50 15

and probability may be

0.2 0.3 0.5

then the expected value is equal to

=10* 0.2 + 12.50 *0.3 + 15 *0.5

=13.25

then this is the expected price for the weekly shipment of rats