Question

A sales analyst listed the probabilities of profits and losses in dollars for a certain company. Find the mean for the probability distribution.

Answer 1

Answer:

The answer is 69.25

Step-by-step explanation:

Answer 2

Answer: The mean for the probability distribution will be 69.25.

Explanation:

Since we given that

$At\ x_1= -500 ,P(x) = 0.076$

$At\ x_2= -250,P(x)= 0.191$

$At\ x_3=0, P(x)= 0.265$

$At\ x_4=250 , P(x)= 0.316$

$At\ x_5=500 , P(x)= 0.152$

As we know the formula for expectation of x i.e. known as mean for the probability distribution,

$E(x)=x\sum_{1}^{5} P(x)$

So, we  apply this formula in our case,

$-500\times 0.076+(-250)\times 0.191+0\times 0.265+250\times 0.316+500\times 0.512=69.25$

$\mu = 69.25$

Hence, the mean for the probability distribution will be 69.25.