Question

A lab orders a shipment of 100 rats a week, 52 weeks a year, from a rat supplier for experiments that the lab conducts. prices for each weekly shipment of rats follow the distribution below: price $10.00 $12.50 $15.00 probability 0.4 0.15 0.45 how much should the lab budget for next year's rat orders, assuming the distribution does not change. (hint: find the expected price.) do not put a dollar sign in the box of your answer. answer to 2 decimal places.

Answer 1

Assuming the distribution does not change, the lab should budget $656.50 for next year's rat orders.

We calculate expected price as follows:

Expected Price = ( 10×0.4) + (12.5× 0.15) + ( 15×0.45)

Expected Price = $ 12.625 (4+1.875+6.75)

Since the expected price is for a week's shipment of rats,

Annual Expense = Expected Price × No. of weeks per year

Annual Expense = $ 12.625 × 52

Annual Expense = $656.5

Answer 2

The value of the expected price will be $656.50.

How to calculate the expected price?

From the information given, the expected price will be calculated thus:

Expected Price = ( 10×0.4) + (12.5× 0.15) + ( 15×0.45)

= $ 12.625

It should be noted that the expected price is for a week's shipment of rats. This will be:

= $ 12.625 × 52

= $656.50

In conclusion, the correct option is $656.50.

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