On any given day,a salesman can earn $0 with a 30% probability,$100 with a 20% probability,or $300 with a 50% probability.His expected earnings equal
A) $0.
B) $100.
C) $150.
D) $170.

Question

Quizplus · Accepted Answer

The expected earnings can be calculated by taking the probability-weighted average of the possible earnings, which gives:
Expected earnings = (0.30 x $0) + (0.20 x $100) + (0.50 x $300) = $0 + $20 + $150 = $170
Therefore, the salesman's expected earnings are $170. The best choice is (D).

On Any Given Day,a Salesman Can Earn $0 with a 30