Multiple probabilities

X

xeonas

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Feb 11, 2015
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Hello, my problem:
What is the expected daily profit if a small grocery store sells X turkeys per day with probabilities P(4)=0.1, P(5)=0.3, P(6)=0.4, P(7)=0.2 and the profit per turkey is $3.5?
My guess is: (3.5*4*0.1)+(3.5*5*0.3)+(3.5*6*0.4)+(3.5*7*0.2)=19.95. Can this be the expected daily profit of the store?
 
xeonas said:
Hello, my problem:
What is the expected daily profit if a small grocery store sells X turkeys per day with probabilities P(4)=0.1, P(5)=0.3, P(6)=0.4, P(7)=0.2 and the profit per turkey is $3.5?
My guess is: (3.5*4*0.1)+(3.5*5*0.3)+(3.5*6*0.4)+(3.5*7*0.2)=19.95. Can this be the expected daily profit of the store?
Click to expand...
Yes. Oh, and note that is profit from the turkeys and not income. BTW: I would have done it slightly different, I would have computed the expected number of turkeys (your figures without the 3.5 = 5.7) and then multiplied by 3.5 but the answer would have been the same.
 
xeonas said:
Hello, my problem:
What is the expected daily profit if a small grocery store sells X turkeys per day with probabilities P(4)=0.1, P(5)=0.3, P(6)=0.4, P(7)=0.2 and the profit per turkey is $3.5?
My guess is: (3.5*4*0.1)+(3.5*5*0.3)+(3.5*6*0.4)+(3.5*7*0.2)=19.95. Can this be the expected daily profit of the store?
Click to expand...
Why would you not factor out the 3.5 so you do not have to multiply (ie type it in) by it 4 times instead of once. Other than that it is fine. Nice work.
 
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