Question

Use Discrete Probability Distributions to solve this question. A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Prices for 100 rats follow the following distribution: Price: $10.00 $12.50 $15.00 Probability: 0.35 0.40 0.25 How much should the lab budget for next year's rat orders be, assuming this distribution does not change?

Answer 1

$637

Explanation:

Expected cost per week:

(10×0.35) + (12.5×0.4) + (15×0.25)

= $12.25

52 weeks: 52 × 12.25

= $637