The probability distribution for the daily sales at Michael's Co.is given below. $$\begin{array} { c c }
\text { Daily Sales } ( \$ 1,000 s ) & \text { Probability } \
40 & 0.1 \
50 & 0.4 \
60 & 0.3 \
70 & 0.2
\end{array}$$
The expected daily sales are
A) $50,000
B) $55,000
C) $56,000
D) $60,000

Question

The probability distribution for the daily sales at Michael's Co.is given below.   $$\begin{array} { c c } 
\text { Daily Sales } ( \$ 1,000 s ) & \text { Probability } \
40 & 0.1 \
50 & 0.4 \
60 & 0.3 \
70 & 0.2
\end{array}$$  
The expected daily sales are
A)  $50,000
B)  $55,000
C)  $56,000
D)  $60,000

Quizplus · Accepted Answer

Expected value = (40 * 0.1) + (50 * 0.4) + (60 * 0.3) + (70 * 0.2) = $56,000