statistic college freshman level

Question

A Financial Analyst wishes to estimate the mean expected annual sales (millions of dollars) of anew product. The estimated sales for the new product Xi (millions of dollars) and the probability distribution is given below. Find the expected value for estimated annual sales (millions).

Xi (millions) p(xi).

20 0.20

22 0.15

24 0.30

26 0.35

1. none of the responses

2. 23.0

3. 5.9

4. 23.6

5. 1.0

Answer 1

The expected value would be E(x) = 20(0.20) + 22(0.15) + 24(0.30) + 26(0.35) = 23.6, so option 4 would be correct!

Hope this helped!