SOLUTION: Mamma Temte bakes 6 pies a day that costs $2 each to produce. On 28% of the days she sells only 2 pies. On 25% of the days, she sells 4 pies, and on the remaining 47% of the days,

Algebra ->  Probability-and-statistics -> SOLUTION: Mamma Temte bakes 6 pies a day that costs $2 each to produce. On 28% of the days she sells only 2 pies. On 25% of the days, she sells 4 pies, and on the remaining 47% of the days,       Log On


   

Question 909962: Mamma Temte bakes 6 pies a day that costs $2 each to produce. On 28% of the days she sells only 2 pies. On 25% of the days, she sells 4 pies, and on the remaining 47% of the days, she sells all 6 pies. If Mamma Temte sells he pies for $4 each, what is her expected profit for a day's worth of pies? {Assume that any leftover pies are given away]
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Mamma Temte bakes 6 pies a day that costs $2 each to produce. On 28% of the days she sells only 2 pies. On 25% of the days, she sells 4 pies, and on the remaining 47% of the days, she sells all 6 pies. If Mamma Temte sells he pies for $4 each, what is her expected profit for a day's worth of pies? {Assume that any leftover pies are given away]
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Sell 2 days:: cost to make = 12 ; revenue = 8 ; GAIN = -4
Sell 4 days:: cost to make = 12 ; revenue = 16 ; GAIN = 4
Sell 6 days:: cost to make = 12 ; revenue = 24 ; GAIN = 12
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Expected GAIN:: -4(0.28)+4(0.25)+12(0.47) = $5.52
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Cheers,
Stan H.
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