12) A department store wants to sell eight purses that cost the store $40 each and 32 purses that cost the store $10 each. If all purses are wrapped in forty identical boxes and if each customer picks a box randomly, find: a) each customer's expected value if a customer pays $15 for a box. b) the department store's total expected profit (or loss) during this sale.
12) A department store wants to sell eight purses that cost the store $40 each and 32 purses that cost the store $10 each. If all purses are wrapped in forty identical boxes and if each customer picks a box randomly, find: a) each customer's expected value if a customer pays $15 for a box. b) the department store's total expected profit (or loss) during this sale.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:12) A department store wants to sell eight purses that cost the store $40 each and 32 purses that
cost the store $10 each. If all purses are wrapped in forty identical boxes and if each customer
picks a box randomly, find:
a) each customer's expected value if a customer pays $15 for a box.
b) the department store's total expected profit (or loss) during this sale.
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