A bottling company offers three kinds of delivery service - instant, same day and within five days. The profit per delivery varies according to the kind of delivery. The profit for an instant delivery is less than the other kinds because the driver has to go directly to a grocery store with a small load and return to the bottling plant. To find out what effect each type of delivery has on the profit picture, the company has made the following tabulation based on deliveries for the previous quarter. What is the weighted mean profit per delivery?
A) $72
B) $100
C) $142
D) $97
E) $99

Question

A bottling company offers three kinds of delivery service - instant, same day and within five days. The profit per delivery varies according to the kind of delivery. The profit for an instant delivery is less than the other kinds because the driver has to go directly to a grocery store with a small load and return to the bottling plant. To find out what effect each type of delivery has on the profit picture, the company has made the following tabulation based on deliveries for the previous quarter.  What is the weighted mean profit per delivery?
A) $72 
B) $100 
C) $142 
D) $97 
E) $99

Quizplus · Accepted Answer

The weighted mean profit per delivery can be calculated by multiplying the profit for each type of delivery by its corresponding proportion, summing up the products and dividing by the total proportion.

Weighted mean profit per delivery = [(30)(0.3) + (120)(0.5) + (200)(0.2)] / (0.3 + 0.5 + 0.2) 
= (9 + 60 + 40) / 1 
= 109

Therefore, the closest option is D) $97.

A Bottling Company Offers Three Kinds of Delivery Service -