SOLUTION: An ice cream shop makes a profit of $1000/Day when it is sunny; breaks even when it is cloudy, and loses $600/day when it is rainy. Suppose it is sunny 85% of the time and cloudy 1
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-> SOLUTION: An ice cream shop makes a profit of $1000/Day when it is sunny; breaks even when it is cloudy, and loses $600/day when it is rainy. Suppose it is sunny 85% of the time and cloudy 1
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Question 1075666: An ice cream shop makes a profit of $1000/Day when it is sunny; breaks even when it is cloudy, and loses $600/day when it is rainy. Suppose it is sunny 85% of the time and cloudy 10% of the time, what is the shops expected daily profit? Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! If it's sunny 85% of the time, and cloudy 10%, then it is rainy 100-85-10=5% of the time. The expected profit is:
1000(.85)+0(.1)-600(.05)=$820 expected daily profit.
