The number of purses a vendor sells daily has the probability distribution represented in the table. Number of Purses, x 0 1 2 3 4 5 P(x) 0.35 0.15 0.2 0.2 0.03 0.07 If each purse sells for $50.00, what is the expected daily total dollar amount taken in by the vendor from the sale of purses? $1.62 $35.00 $79.30 $81.00 $162.00
(D)$81
Step-by-step explanation:
Given that the number of purses a vendor sells daily has the probability distribution represented in the table.
Expected Value, [tex]E(x)=\sum_{i=1}^{n}x\cdot p(x)[/tex]
Therefore:
[tex]E(x)=(0X0.35)+(1X0.15)+(2X0.2)+(3X0.2)+(4X0.03)+(5X0.07)\\=0+0.15+0.4+0.6+0.12+0.35\\E(x)=1.62[/tex]
If each purse sells for $50.00, the number of expected daily total dollar amount taken in by the vendor from the sale of purses
=Expected Value X $50
=1.62 X $50
=$81
The correct option is D.