A lab orders a shipment of 100 rats a week, 52 weeks a year, from a rat supplier for experiments that the labconducts. Prices for each weekly shipment of rats follow the distribution below: $$\begin{array} { l | c c c }
\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability } & 0.2 & 0.3 & 0.5
\end{array}$$ How much should the lab budget for next yearʹs rat orders assuming this distribution does not change. (Hint:find the expected price.)
A) $689.00
B) $13.25
C) $1325.00
D) $3,582,800.00

Question

A lab orders a shipment of 100 rats a week, 52 weeks a year, from a rat supplier for experiments that the labconducts. Prices for each weekly shipment of rats follow the distribution below: $$\begin{array} { l | c c c } 
\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability } & 0.2 & 0.3 & 0.5
\end{array}$$ How much should the lab budget for next yearʹs rat orders assuming this distribution does not change. (Hint:find the expected price.)
A) $689.00
B) $13.25
C) $1325.00
D) $3,582,800.00

Quizplus · Accepted Answer

The expected price is $10.00 * 0.2 + $12.50 * 0.3 + $15.00 * 0.5 = $13.25. The lab should budget for 52 * $13.25 = $689.00 for next year's rat orders.

A Lab Orders a Shipment of 100 Rats a Week Price $10.00$12.50$15.00 Probability 0.20.30.5\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.2 & 0.3 & 0.5\end{array} Price Probability ​$10.000.2​$12.500.3​$15.000.5​​

A Lab Orders a Shipment of 100 Rats a Week $\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.2 & 0.3 & 0.5\end{array}$