Explanation Given: The probability distribution is shown below, Sales 20 22 24 26 28 30 Probability .05 .10 .35 .30 .15 .05 Approach: The expected value of X , denoted by E ( X ) is given by, E ( X ) = x 1 p 1 + x 2 p 2 + ........ + x n p n Here, x 1 , x 2 , ........ , x n are the values of random variable X with associated probabilities p 1 , p 2 , ....... , p n respectively. Calculation: Let X denote the sales of products. The expected value of X is calculated as below, E ( X ) = x 1 p 1 + x 2 p 2 +

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ISBN: 8220103649001

Author: Tan

Publisher: CENGAGE L

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Chapter 8.2, Problem 12E

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The expected sales for the upcoming year.

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The expected sales for the upcoming year.

Solution Summary: The author explains that the expected sales for the upcoming year is 25.1.

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The expected sales for the upcoming year.