It is convenient to let a spreadsheet or graphing calculator do the math for this. Functions can be defined for cost and profit, and evaluated at each of the volumes of interest.
a1) For 200 cars, the Outside location yields the greatest profit
a2) For 300 cars, the City location yields the greatest profit
b) The sites yield the same profit for a volume of 278 cars.
Answer: The required expected value is $3.46.
Step-by-step explanation:
Since we have given that
Number of value of 4 or less are
2,3,4
So, there are 12 in numbers.
So, probability would be
Since Aces are considered as the highest card in the deck.
So, remaining probability would be
Amount paid or value of 4 or less = $165
Amount not paid for other case = $45
So, the expected value would be
Hence, the required expected value is $3.46.