Cinemark charges the following prices for snacks and drinks: $5.50 for a large popcorn, $3.50 3 for a large soda, and $3 for a large bag of candy. Past data shows that 23% of movie goers buy one large popcorn and one large soda, 35% of movie goers buy one large soda and one large bag of candy, and 42% purchase nothing. About how much revenue should Cinemark expect per movie goer? Round to two decimal places.
(a) $2.49
(b) $4.35
(c) $4.8
(d) $9.0
(e) $15.50
The probability distribution of revenues will be:
| x | P(x) |
| $5.50 + $3.50 = $9 | 0.23 |
| $3.50 + $3 = $6.5 | 0.35 |
| 0 | 0.42 |
Hence,
Expected revenue = $9*0.23 + $6.5*0.35 + 0 = $4.35
Option B is correct.
Cinemark charges the following prices for snacks and drinks: $5.50 for a large popcorn, $3.50 3...