Mamma Temte bakes six pies a day that cost $2 each to produce. On 15% of the days she sells only two pies. On30% of the days, she sells 4 pies, and on the remaining 55% of the days, she sells all six pies. If Mama Temtesells her pies for $6 each, what is her expected profit for a dayʹs worth of pies? [Assume that any leftover piesare given away.]
A) $16.80
B) $28.80
C) -$6.00
D) -$7.20

Question

Quizplus · Accepted Answer

The expected profit calculation involves finding the weighted average of profits for each scenario. For 15% of days (selling 2 pies): Profit = (2*$6) - (6*$2) = $12 - $12 = $0 For 30% of days (selling 4 pies): Profit = (4*$6) - (6*$2) = $24 - $12 = $12 For 55% of days (selling 6 pies): Profit = (6*$6) - (6*$2) = $36 - $12 = $24 Expected profit = (0.15*$0) + (0.30*$12) + (0.55*$24) = $0 + $3.6 + $13.2 = $16.80

Mamma Temte Bakes Six Pies a Day That Cost $2