A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c }
\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability } & 0.3 & 0.4 & 0.3
\end{array}$$ How much should the lab budget for next year's frog orders assuming this distribution does not change? (Hint: Find the expected price and assume 52 weeks per year.)
A) $3,380,000.00
B) $1250.00
C) $650.00
D) $12.50

Question

A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c } 
\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability } & 0.3 & 0.4 & 0.3
\end{array}$$ How much should the lab budget for next year's frog orders assuming this distribution does not change? (Hint: Find the expected price and assume 52 weeks per year.)
A) $3,380,000.00
B) $1250.00
C) $650.00
D) $12.50

Quizplus · Accepted Answer

The expected price per shipment is $12.50. For 52 weeks, the budget is 100 frogs * $12.50 * 52 weeks = $65,000.00.

A Lab Orders a Shipment of 100 Frogs Each Week Price $10.00$12.50$15.00 Probability 0.30.40.3\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.3 & 0.4 & 0.3\end{array} Price Probability ​$10.000.3​$12.500.4​$15.000.3​​

A Lab Orders a Shipment of 100 Frogs Each Week $\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.3 & 0.4 & 0.3\end{array}$