Use the following two probability distributions for sales of a firm to answer the following question: $$\begin{array} { c c c }
\text { Sales } & \begin{array} { c }
\text { Disilibisiont } \
\text { Probabildy }
\end{array} & \begin{array} { c }
\text { Dilribulion2 } \
\text { Probabilly }
\end{array} \
\hline 2,000 & 0.05 & 0.05 \
3,000 & 0.20 & 0.15 \
4,000 & 0.50 & 0.20 \
5,000 & 0.20 & 0.35 \
6,000 & 0.05 & 0.25
\end{array}$$ The expect value of sales for Distribution 2 is _____________.
A)2,500
B)2,758
C)2,800
D)3,000
E)none of the above

Question

Use the following two probability distributions for sales of a firm to answer the following question: $$\begin{array} { c c c } 
\text { Sales } & \begin{array} { c } 
\text { Disilibisiont } \
\text { Probabildy }
\end{array} & \begin{array} { c } 
\text { Dilribulion2 } \
\text { Probabilly }
\end{array} \
\hline 2,000 & 0.05 & 0.05 \
3,000 & 0.20 & 0.15 \
4,000 & 0.50 & 0.20 \
5,000 & 0.20 & 0.35 \
6,000 & 0.05 & 0.25
\end{array}$$ The expect value of sales for Distribution 2 is _____________.
A)2,500
B)2,758
C)2,800
D)3,000
E)none of the above

Quizplus · Accepted Answer

The expected value of sales for Distribution 2 is calculated by multiplying each sales figure by its corresponding probability and then summing these products: $2,000 \times 0.05 + 3,000 \times 0.15 + 4,000 \times 0.20 + 5,000 \times 0.35 + 6,000 \times 0.25 = 100 + 450 + 800 + 1,750 + 1,500 = 4,600$. None of the provided options matches this calculation.

Use the Following Two Probability Distributions for Sales of a Firm