Mamma Temte bakes six pies each day at a cost of $2 each. On 31% of the days she sells only two pies. On 18% of the days, she sells 4 pies, and on the remaining 51% of the days, she sells all six
Pies. If Mama Temte sells her pies for $4 each, what is her expected profit for a dayʹs worth of pies?
[Assume that any leftover pies are given away.]
A)$5.60
B)-$8.00
C)$17.60
D)-$7.60

Question

Quizplus · Accepted Answer

To calculate the expected profit, we first calculate the profit for each scenario:  - Selling 2 pies: Revenue = 2 * $4 = $8, Cost = 6 * $2 = $12, Profit = $8 - $12 = -$4  - Selling 4 pies: Revenue = 4 * $4 = $16, Cost = 6 * $2 = $12, Profit = $16 - $12 = $4  - Selling 6 pies: Revenue = 6 * $4 = $24, Cost = 6 * $2 = $12, Profit = $24 - $12 = $12  Next, calculate the expected profit:  Expected Profit = (0.31 * -$4) + (0.18 * $4) + (0.51 * $12)  = -$1.24 + $0.72 + $6.12  = $5.60

Mamma Temte Bakes Six Pies Each Day at a Cost