Question

An ice cream parlor serves ice cream cones, milkshakes, and waffles with ice cream. The cost of an ice cream cone is $1.20, the cost of a milkshake is $2.00, and the cost of a waffle with ice cream is $3.50. If 50% of the customers choose an ice cream cone, 30% choose a milkshake, and 20% choose a waffle with ice cream, what is the expected value of the cost of one item served at the parlor?

how do you do it

Answer 1

this answer is $1.90

im not sure of the work to get to the answer

Answer 2

The answer is $ 1.90

Explanation:

The expected value is the weighted average of the three products, and is calculated as all averagerages are:

50 customers pay $ 1.20

30 customers pay $ 2.00

20 customer pay $ 3.50

Expected Value = 50*1.20+30*2.00+20*3.50/100 = 60+60+70/100 =190/100

= 1.90 $