Exhibit 5-9
The probability distribution for the daily sales at Michael's Co. is given below.
-Refer to Exhibit 5-9. The expected daily sales are
A)$55,000
B)$56,000
C)$50,000
D)$70,000

Question

Exhibit 5-9
The probability distribution for the daily sales at Michael's Co. is given below. 
-Refer to Exhibit 5-9. The expected daily sales are
A)$55,000 
B)$56,000 
C)$50,000 
D)$70,000

Quizplus · Accepted Answer

The expected daily sales can be calculated by multiplying each sales amount by its respective probability and then summing them up. (40,000 x 0.2) + (50,000 x 0.3) + (60,000 x 0.4) + (80,000 x 0.1) = $56,000. Therefore, the best choice is option B.

Exhibit 5-9 The Probability Distribution for the Daily Sales at Michael's Co