Central Parking is considering whether to expand their current facilities. There is a 30 percent chance that 100 more spots will be needed because of a new increase in subway fares. However there is a 70 percent chance that only 50 more spots will be needed because the cost of driving will be roughly equal to mass transit. What should be their average lot expansion size?
A) 30 spots
B) 35 spots
C) 75 spots
D) 65 spots

Question

Quizplus · Accepted Answer

The average lot expansion size can be calculated by taking the weighted average of the two scenarios: (0.30 * 100) + (0.70 * 50) = 65 spots.

Central Parking Is Considering Whether to Expand Their Current Facilities