A store selling carpet tracks the amount of square footage sold to its customers
ID: 3051385 • Letter: A
Question
A store selling carpet tracks the amount of square footage sold to its customers, rounding to the nearest 500 sq ft. Here is the table.
a) What is the average expected area sold? (I already found this answer by doing 500(0.10) + 1000(0.25) etc but please check if that's right)
b) If the average cost of carpet sold is $3/sq ft, what is the average sale price per customer? (i assume we divide the answer we got from a with 3 right? not sure)
c) If a salesman completes sales to five customers one day, what do you expect his total sales to be?
area 500 square feet 1000 square feet 1500 square feet 2000+ square feet probability 0.10 0.25 0.45 0.20Explanation / Answer
(a) Average expected area sold = 0.10 * 500 + 0.25 * 1000 + 0.45 * 1500 + 0.20 * 2000 = 1375 square ft
(b) Average cost of Carpet sold = $ 3/ sq ft
average sale price per customer = Average cost of carpet * average expected are sold = 1375 sq. ft * $ 3 / sq ft = $ 4125
(c) If a salesman completes sales to five customers one day.
Expected sales = 5 * $ 4125 = $20625
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