Question

The Alliance Corp expects to sell the tollowing number of unts of copper cables at the prices indicated, under three direrent scenanos in the economy. The probability or each outcome is indicated Units Price 280 $ 31 46 56 Outcome Probablity 0.70 0.20 480 730 what is the expected value of the total sales projection? otal expected value

Answer 1

Expected Sales Value = Probability Weighted Sales of different Outcomes

Expected Sales Value = 0.7*(280*31) + 0.2*(480*46) + 0.1*(730*56)

Expected Sales Value = 6076 + 4416 + 4088

Expected Sales Value = $14,580