Question

(12pts) Alexis wants to buy $500 worth of new clothes before school starts. She decides to have a garage sale to earn the money for the clothes. She hopes to sell her comic book collection for $200, stuffed toys for $100, a bicycle for $50, and a few knicknacks from her room for $250. The probabilities that her neighbors want to buy the stuff Alexis is selling are distributed as shown in the table."

|P(X) Probability|
|Comics 1/4 |
|Toys 1/4 |
|Bikes 1/4 |
|Knicknacks 1/4|

"What is Alexis's expected garage sale income, and how much more would she need to earn to break even?"


A. The expected income is $150, and Alexis would need $350 more to break even.



B. The expected income is $600, and Alexis would need $100 less to break even.



C. The expected income is $300, and Alexis would need $200 more to break even.



D. The expected income is $178.50, and Alexis would need $321.50 more to break even.

Answer 1

A. The expected income is $150, and Alexis would need $350 more to break even.

Explanation:

For plato

Answer 2

In this problem, we are given with the individual prices of items: comics, toys, bikes and knicknacks. We are also given with the probability of each item of selling to the customers. To calculate the expected outcome, we multiply the price of each item to its corresponding probability and sum of these products. The sum is $150. Since $500 is needed by the seller, $350 more is needed to earn. Answer is A.