You took a summer job as a salesperson in a shoe store with the knowledge that you will either make $2,000 or $3,500 with probabilities 0.4 and 0.6 respectively. What is your expected income for the summer job?
A) $2,000
B) $3,000
C) $5,000
D) $2,900

Question

Quizplus · Accepted Answer

The expected income is calculated by multiplying each outcome by its probability and summing the results: (0.4 * $2,000) + (0.6 * $3,500) = $800 + $2,100 = $2,900.

You Took a Summer Job as a Salesperson in a Shoe