Answer:
Expected Profit per customer = 0.25 * x + 0.2 * y + 0.3 * z
Expected Money to make from 50 Customers = 50 * [ 0.25 * x + 0.2 * y + 0.3 * z]
Explanation:
Assumption:
Let we assume that the customers buying choice is normally distributed with the following probabilities:
Probability of Cinnamon Roll = x
Probability of Donuts = y
Probability of Croissant = z
Calculation:
As we know that expected profit equals to the sum of the product of probabilities of each item and their corresponding profits. i.e.
Expected Profit per customer = ∑i to n [ Probability of Item i * Corresponding Profit i] whereas n equals total number of items.
therefore we have:
Expected Profit per customer = Probability of Cinnamon Roll * Profit from Cinnamon Roll + Probability of Donuts * Profit from Donuts + Probability of Croissant * Profit from Croissant
By putting values we get:
Expected Profit per customer = x*0.25 + y*0.2 + z*0.3
By rearranging the equation we get:
Expected Profit per customer = 0.25 * x + 0.2 * y + 0.3 * z
For calculating expected money from 50 customers we multiply the expected profit per customer with number of customers as under:
Expected Money to make from 50 Customers = 50 * [ 0.25 * x + 0.2 * y + 0.3 * z]
