Question

The number of purses a vendor sells daily has the probability distribution represented in the table.

Number of Purses, x 0 1 2 3 4 5
P(x) 0.35 0.15 0.2 0.2 0.03 0.07


If each purse sells for $50.00, what is the expected daily total dollar amount taken in by the vendor from the sale of purses?

Answer 1

$81

Explanation:

Given that the number of purses a vendor sells daily has the probability distribution represented in the table.

Expected Value,
`E(x)=\sum_(i=1)^nx* p(x)`

Therefore:

`E(x)=(0X0.35)+(1X0.15)+(2X0.2)+(3X0.2)+(4X0.03)+(5X0.07)`

`=0+0.15+0.4+0.6+0.12+0.35`

`E(x)=1.62`

If each purse sells for $50.00, the number of expected daily total dollar amount taken in by the vendor from the sale of purses

=Expected Value X $50

=1.62 X $50

=$81