Exhibit 5-5.The number of homes sold by a realtor during a month has the following probability distribution: Refer to Exhibit 5-5.What is the expected number of homes sold by the realtor during a month?
A)1
B)1.2
C)1.5

Question

Exhibit 5-5.The number of homes sold by a realtor during a month has the following probability distribution:  Refer to Exhibit 5-5.What is the expected number of homes sold by the realtor during a month?
A)1 
B)1.2 
C)1.5

Quizplus · Accepted Answer

To find the expected value, we multiply each possible outcome by its probability and then sum them up. So,

Expected value = (0.05) (0) + (0.15) (1) + (0.35) (2) + (0.25) (3) + (0.15) (4) + (0.05) (5) 
Expected value = 1.2

Therefore, the expected number of homes sold by the realtor during a month is 1.2, which is closest to option B.