Question

A student is selling baked goods in the halls before school as a fundraiser. She sells cinnamon rolls, donuts, and croissants. Students purchase the goods according to the probability distribution:

X(Product): cinnamon roll, donut, croissant
P(x): 0.20, 0.55, 0.25

A): If a cinnamon roll yields $0.25 profit, a donut yields $0.20 profit, and a croissant yields a $0.30 profit, how much profit will be made on each customer?

B):If there are 50 customers, how much can you expect her to make?

Answer 1

a). Profit made by each customer: (0.25 * 0,2) + (0.20 * 0.55) + (0.30 * 0.25) = 0.05 + 0.11 + 0.07 = $0.235

b). Money made if there are 50 customers: $0.235 * 50 = $11.75