A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c }
\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability } & 0.4 & 0.45 & 0.15
\end{array}$$ How much should the lab budget for next year's frog orders assuming this distribution does not change? (Hint: Find the expected price and assume 52 weeks per year.)
A) $617.50
B) $11.88
C) $1188.00
D) $3,211,000.00

Question

A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c } 
\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \
\hline \text { Probability } & 0.4 & 0.45 & 0.15
\end{array}$$ How much should the lab budget for next year's frog orders assuming this distribution does not change? (Hint: Find the expected price and assume 52 weeks per year.)
A) $617.50
B) $11.88
C) $1188.00
D) $3,211,000.00

Quizplus · Accepted Answer

The expected price is $11.88, so the lab should budget $11.88 * 52 = $617.50 for next year's frog orders.

A Lab Orders a Shipment of 100 Frogs Each Week Price $10.00$12.50$15.00 Probability 0.40.450.15\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.4 & 0.45 & 0.15\end{array} Price Probability ​$10.000.4​$12.500.45​$15.000.15​​

A Lab Orders a Shipment of 100 Frogs Each Week $\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.4 & 0.45 & 0.15\end{array}$