Question

The probability distribution for the weekly sales at a store is Weekly Sales (In $1,000s) Probability 40 0.] 50 0.4 60 0.3 70 0.2 The expected weekly sales are $50,000 $70,000 $56,000 $55,000

Answer 1

The expected weekly sales for the store are calculated to be $56,000 by using the expected value formula, summing the products of each weekly sales amount and its corresponding probability.

Step-by-step explanation:

Expected Weekly Sales Calculation

To calculate the expected weekly sales for the store based on the given probability distribution, we use the concept of the expected value. The expected value is calculated by multiplying each possible value of a random variable by its probability and then adding up all these products.

Using the provided table with Weekly Sales (in $1,000s) and their associated probabilities, the calculation would be:

• (40 × 0.1) + (50 × 0.4) + (60 × 0.3) + (70 × 0.2)
• 4 + 20 + 18 + 14
• The summed value is $56,000.

Therefore, the expected weekly sales are $56,000.