The weekly demand for a company's product follows the probability distribution below:

The expected value,or average,weekly demand is
A)137.50.
B)142.50.
C)153.75.
D)165.75

Question

The weekly demand for a company's product follows the probability distribution below:

The expected value,or average,weekly demand is
A)137.50. 
B)142.50. 
C)153.75. 
D)165.75

Quizplus · Accepted Answer

To calculate the expected value or average, we need to multiply each demand by its corresponding probability and then sum up all the values.

Expected value = (50*0.15) + (100*0.25) + (150*0.35) + (200*0.20) + (250*0.05)

Expected value = 7.50 + 25.00 + 52.50 + 40.00 + 12.50

Expected value = 137.50

Therefore, the best choice is B) 142.50, which is the closest option to the calculated expected value of 137.50.

The Weekly Demand for a Company's Product Follows the Probability