Question

The prices of three sneaker styles are $48, $56, and $72. The probability of choosing the $48 sneaker style is 12%. The probability of choosing the $56 sneaker style is 18%. The probability of choosing the $72 sneaker style is 38%. What is the expected value of a pair of sneakers?

a. $28
b. $58
c. $56
d. $48

Answer 1

The expected value of a pair of sneakers is $43.20.

Step-by-step explanation:

To find the expected value of a pair of sneakers, you need to multiply each price by its probability of being chosen, and then add up these values. In this case, the expected value is calculated as:

Expected Value = ($48 * 0.12) + ($56 * 0.18) + ($72 * 0.38)

Expected Value = $5.76 + $10.08 + $27.36

Expected Value = $43.20

Therefore, the expected value of a pair of sneakers is $43.20. None of the given options (a, b, c, d) match the correct answer.