The owner of the small convenience store in the previous question sells two different candy brands. On average, he sells 20 “A” candies with a standard deviation of 3 and 15 “B” candies with a standard deviation of 5. The price for candy “A” and “B” is 2$ and 1.5$ respectively. a. Assuming that selling “A” is independent of selling “B,” what is the expected value and standard deviation of the total revenue from selling these two products? b. What is the probability of selling less than 30$ of “A” candies? c. What is the probability of selling more than 30$ of “B” candies?
The owner of the small convenience store in the previous question sells two different candy
brands. On average, he sells 20 “A” candies with a standard deviation of 3 and 15 “B”
candies with a standard deviation of 5. The price for candy “A” and “B” is 2$ and 1.5$
respectively.
a. Assuming that selling “A” is independent of selling “B,” what is the expected value
and standard deviation of the total revenue from selling these two products?
b. What is the probability of selling less than 30$ of “A” candies?
c. What is the probability of selling more than 30$ of “B” candies?
d. What is the probability of gaining between 50$ to 70$ from selling both candies?
e. If buying these candies costs 40$ for the owner, what would be the probability of
making a profit out of selling these candies? Explain whether having these products
in the convenience store makes sense
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