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Ostrovityanka [42]
2 years ago
15

A furniture store is having a sale on sofas and you're going to buy one. The advertisers know that buyers get to the store and t

hat 1 out of 5 buyers change to a more expensive sofa than the one in the sale advertisement. Let X be the cost of the sofa. What is the average cost of a sofa if the advertised sofa is $250 and the more expensive sofa is $450
Mathematics
1 answer:
MrRissso [65]2 years ago
6 0

Answer:

$290

Step-by-step explanation:

We are told that 1 out of 5 buyers change to a more expensive sofa than the one in the sale advertisement.

Now we are told that the advertised sofa is $250 and the more expensive sofa is $450.

Thus;

P(x) for expensive sofa = 1/5

P(x) for sofa in sale advertisement = 4/5

Thus, expected value is;

E(X) = (1/5)450 + (4/5)250

E(x) = 90 + 200

E(x) = $290

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