You are a gourmet coffee company salesperson. Let X be the differernt types of c

Question

You are a gourmet coffee company salesperson. Let X be the differernt types of coffee your company sells. The second row gives you the percentage of each type of coffee you sell in a typical year. You’ll also note that one of the cells is missing a value. A pound of Ethiopian coffee costs $10, Turkish is also $10, Columbian is $12 and Madagascarian is $11. If you anticipate selling 1400 pounds of coffee this coming year, what is the expected income that you will make for the company?

X

Echo of Ethiopia

Taste of Turkey

Columbian Craze

Madagascar Mystery

0.34

0.28

0.17

X

Echo of Ethiopia

Taste of Turkey

Columbian Craze

Madagascar Mystery

0.34

0.28

0.17

Explanation / Answer

P(Taste of Trueky) = 0.21 since sum of all probabilities is equal to 1

Now E(X) = 0.34*10 + 0.21*10 + 0.28*12 + 0.17*11 = 10.73

At this time 1400 pounds = 1940 dollars

The expected income is 1940*10.73 = 20816.2 dollars

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.