An E-Commerce business has estimated the sales revenue for this Christmas season during a four-week period from Black Friday at $80M, $75M, $62M and $85M with probabilities of 0.5,0,2,0.1 and 0.2 respectively. The expected sales then may be estimated to be for this Christmas season is $76.5 M.

Question

Quizplus · Accepted Answer

The expected sales revenue is calculated by multiplying each sales figure by its probability and summing the results: (80M * 0.5) + (75M * 0.2) + (62M * 0.1) + (85M * 0.2) = 40M + 15M + 6.2M + 17M = 78.2M.

An E-Commerce Business Has Estimated the Sales Revenue for This