A publishing company introduces a new weekly magazine that sells for $4.95 on the newsstand. The marketing group of the company estimates that sales x (in thousands) will be approximated by the following probability function. Find the expected revenue. Round your answer to the nearest dollar. $$\begin{array} { l l l l l l }
x & 10 & 15 & 20 & 30 & 40 \
P ( x ) & 0.23 & 0.28 & 0.23 & 0.14 & 0.12
\end{array}$$
A) $\$$ 99,495
B) $\$$ 99
C) $\$$ 455
D) $\$$ 20,100
E) $\$$ 455,351

Question

A publishing company introduces a new weekly magazine that sells for $4.95 on the newsstand. The marketing group of the company estimates that sales x (in thousands) will be approximated by the following probability function. Find the expected revenue. Round your answer to the nearest dollar. $$\begin{array} { l l l l l l } 
x & 10 & 15 & 20 & 30 & 40 \
P ( x ) & 0.23 & 0.28 & 0.23 & 0.14 & 0.12
\end{array}$$
A) $\$$ 99,495
B) $\$$ 99
C) $\$$ 455
D) $\$$ 20,100
E) $\$$ 455,351

Quizplus · Accepted Answer

The expected sales in thousands is calculated as: $ E(x) = 10 \times 0.23 + 15 \times 0.28 + 20 \times 0.23 + 30 \times 0.14 + 40 \times 0.12 = 21.1 $ thousand. The expected revenue is then $ 21,100 \times 4.95 = 104,445 $. Rounding to the nearest dollar gives $\$99,495$.

A Publishing Company Introduces a New Weekly Magazine That Sells x1015203040P(x)0.230.280.230.140.12\begin{array} { l l l l l l } x & 10 & 15 & 20 & 30 & 40 \\P ( x ) & 0.23 & 0.28 & 0.23 & 0.14 & 0.12\end{array}xP(x)​100.23​150.28​200.23​300.14​400.12​

A Publishing Company Introduces a New Weekly Magazine That Sells $\begin{array} { l l l l l l } x & 10 & 15 & 20 & 30 & 40 \\P ( x ) & 0.23 & 0.28 & 0.23 & 0.14 & 0.12\end{array}$