Exhibit 5-13
Oriental Reproductions, Inc. is a company that produces handmade carpets with oriental designs. The production records show that the monthly production has ranged from 1 to 5 carpets. The production levels and their respective probabilities are shown below.
-Refer to Exhibit 5-13. the expected monthly production level is
A)1.00
B)4.00
C)3.00
D)3.84

Question

Exhibit 5-13
Oriental Reproductions, Inc. is a company that produces handmade carpets with oriental designs. The production records show that the monthly production has ranged from 1 to 5 carpets. The production levels and their respective probabilities are shown below. 
-Refer to Exhibit 5-13. the expected monthly production level is
A)1.00 
B)4.00 
C)3.00 
D)3.84

Quizplus · Accepted Answer

The expected monthly production level is calculated as the weighted average of possible production levels, considering their probabilities. The value 3.84 is likely the result of such a calculation.

Exhibit 5-13 Oriental Reproductions, Inc. Is a Company That Produces Handmade Carpets