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Orlov [11]
3 years ago
13

The Alliance Corp. expects to sell the following number of units of copper cables at the prices indicated, under three different

scenarios in the economy. The probability of each outcome is indicated. Outcome Probability Units Price A 0.50 295 $ 34 B 0.30 510 49 C 0.20 790 59 What is the expected value of the total sales projection?
Mathematics
1 answer:
Serggg [28]3 years ago
8 0

Answer:

E(x) = 21834

Step-by-step explanation:

Given

The above data

Required

Determine the expected value E(x)

E(x) is calculated as thus;

E(x) = \sum xf(x)

Where f(x) represents the total sale of each outcome;

For A:

f(x) = 295 *34

f(x) = 10030

For B:

f(x) =510 *49

f(x) =24990

For C:

f(x) = 790 *59

f(x) = 46610

Hence, E(x):

E(x) = 0.5 * 10030 + 0.30 * 24990 + 0.20 * 46610

E(x) = 21834

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