Question

The probability of selling a product costing $3000 is 6%, the probability of selling a product costing $1100 is 17%, and the probability of selling a product costing $200 is 32%. What is the expected value of the sales of these products each week?

Answer 1

The expected value of the sales of these products each week is the sum of individual expected values for each product, resulting in a total expected value of $431 per week.

Step-by-step explanation:

To calculate the expected value of the sales of these products each week, we need to multiply the probability of each event by the value of the event and sum these products. This gives us the average amount expected per week, assuming all events are independent.

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• For the $3000 product with a 6% chance, the expected value is 0.06 × $3000 = $180.
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• For the $1100 product with a 17% chance, the expected value is 0.17 × $1100 = $187.
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• For the $200 product with a 32% chance, the expected value is 0.32 × $200 = $64.

The total expected value is the sum of individual expected values, which is $180 + $187 + $64 = $431 per week.