Respuesta :
Answer:
$1,975
Explanation:
Given:
Cost of new copy = $100
Cost of used copy = $70
Total sales = 25 Copies
Note: Given question is incomplete, missing information is given below:
30% students want new copies,whereas 70% students wants used copies.
Computation of sale of new copies:
Total new copies = 25 × 30%
Total new copies = 7.5
Computation of sale of used copies:
Total used copies = 25 × 70%
Total used copies = 17.5
Computation of total revenue from sales:
Total revenue from sales = ($100 × Total new copies) + ($70 × Total used copies)
Total revenue from sales = ($100 × 7.5) + ($70 × 17.5)
Total revenue from sales = ($750) + ($1,225)
Total revenue from sales = $1,975
Answer:
Expected Value = $2125
Explanation:
Expected Value is the average value of all possible outcomes, weighted with the corresponding with the probability of each outcome
Formula : E {X} = Σ [ X. P(X) ]
Expected Value {Sales Revenue} = Σ [Total Revenue . P (Total Revenue)]
Case 1 : New Copies
- Sale Probability = Old Copies / Total Copies = 50 / 100 = 1/2
- 25 copies Total Revenue = 25 x price per copy = 25 x 100 = 2500
Case 2 : New Copies
- Sale Probability = New Copies/ Total Copies = 50/ 100 = 1/2
- 25 copies Total Revenue = 25 x price per copy = 25 x 70 = 1750
∴ Expected Value = (1/2) (2500) + (1/2) (1750)
= 1250 + 875 = 2125
