Mamma Temte bakes six pies each day at a cost of $2 each. On 11% of the days she sells only two pies. On 17% of the days, she sells 4 pies, and on the remaining 72% of the days, she sells all six pies. If Mama Temte sells her pies for $4 each, what is her expected profit for a day's worth of pies?
[Assume that any leftover pies are given away.]

A) $\$ 20.88$
B) $- \$ 6.78$
C) $- \$ 8.00$
D) $\$ 8.88$

Question

Mamma Temte bakes six pies each day at a cost of $2 each. On 11% of the days she sells only two pies. On 17% of the days, she sells 4 pies, and on the remaining 72% of the days, she sells all six pies. If Mama Temte sells her pies for $4 each, what is her expected profit for a day's worth of pies?
[Assume that any leftover pies are given away.]

A) $\$ 20.88$
B) $- \$ 6.78$
C) $- \$ 8.00$
D) $\$ 8.88$

Quizplus · Accepted Answer

The expected profit is calculated by considering the probability of each scenario and the profit in each case. Profit is calculated as revenue minus cost. The expected profit is: (0.11 * (2 * $4 - 6 * $2)) + (0.17 * (4 * $4 - 6 * $2)) + (0.72 * (6 * $4 - 6 * $2)) = $8.88.

Mamma Temte Bakes Six Pies Each Day at a Cost $20.88\$ 20.88$20.88

Mamma Temte Bakes Six Pies Each Day at a Cost $\$ 20.88$