statistics probability

Question

The chart below lists the number of boats John expects to sell each week along with the probabilities from past experience.  

# of boats	0	1	2	3
Probability	0.19	0.33	0.31	0.17

 

1.  What is the expected value on the number of boats he expects to sell each week? Show your work on paper, put your answer in blank #1. 

2.  If he is paid commission of $300 per boat sold, what is the expected value of his weekly pay?  Show your work on paper, put your answer in blank #2. 

Answer 1

x P(x) x*P(x)

0 0.19 0

1 0.33 0.33

2 0.31 0.62

3 0.17 0.51

e(x) = sum x*P(x) = 1.46

weekly pay = 1.46 * $300 = $438