Question

Suppose that the profit a Honda dealership makes on selling an Accord is random and is given by the following probability distribution:
39% of the time the profit is 900, 28% of the time the profit is 1200; 19% of the time the profit is 1400; and otherwise, the profit is 1900. What is the expected value of the profit the dealership makes on selling an Accord? (please express your answer using 2 decimal places)

Answer 1

solubions: Po 6+ (x ) 1 f (x) 0.19 900 0. 39 1200 0.28 1400 1900 0.14 Expected value of profit = (900) (0.39) + 1200 (0.28) + 1400 X ols +(909) x 10.14) = 1219 |