A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Prices for 100 rats follow the following distribution:
$$\begin{array} { l | r r r }
\text { Price: } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability: } & 0.35 & 0.40 & 0.25
\end{array}$$
How much should the lab budget for next year's rat orders be, assuming this distribution does not change?

A) $780
B) $520
C) $637
D) $650

Question

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Prices for 100 rats follow the following distribution:
$$\begin{array} { l | r r r } 
\text { Price: } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability: } & 0.35 & 0.40 & 0.25
\end{array}$$
 How much should the lab budget for next year's rat orders be, assuming this distribution does not change?

A) $780
B) $520
C) $637
D) $650

Quizplus · Accepted Answer

The expected price for 100 rats is calculated as: (0.35 * $10.00) + (0.40 * $12.50) + (0.25 * $15.00) = $12.25. For 52 weeks, the budget is 52 * $12.25 = $637.

A Lab Orders 100 Rats a Week for Each of the 52