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Based on our Starbucks analysis report, 4 out of every 20 drinks are returned because of a customer complaint and 16/20 are not returned. Starbucks makes $4 on a typical drink not returned (probability of 16/20 ), but loses -$6 (probability of 4/20) when a drink is returned because the employee has to re-make it. What is the Expected Value of this problem and are they going to make a profit ?

Based on our Starbucks analysis report, 4 out of every 20 drinks are returned because-example-1

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4 votes
The answer to this problem is $2 for each drink
User Niaz
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5 votes

Answer:

Explanation:

the expected profit should be 2 dollars a drink

User Les Paul
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