Find the expected value.
-A car agency has found daily demand to be as shown in the table. Find the expected number of customers.
A)2
B)12
C)9
D)10

Question

Find the expected value.
-A car agency has found daily demand to be as shown in the table.  Find the expected number of customers.
A)2 
B)12 
C)9 
D)10

Quizplus · Accepted Answer

To find the expected number of customers, we multiply each demand value by its corresponding probability and sum the results: 
(0.10 x 0) + (0.20 x 4) + (0.25 x 8) + (0.25 x 12) + (0.20 x 16) = 0 + 0.8 + 2 + 3 + 3.2 = 9. Therefore, the expected number of customers is 9, making choice C the best answer.

Find the Expected Value