Answer:
The expected value of the total sales projection is $8,980.
Step-by-step explanation:
We have these following probabilities:
30% probability of selling 200 units at the price of $15 each. So 30% probability of earning 200*15 = $3,000.
50% probability of selling 320 units at the price of $30 each. So 50% probabilty of earning 320*30 = $9,600.
20% probability of selling 410 units at the price of $40 each, So 20% probability of earning 410*40 = $16,400.
What is the expected value of the total sales projection?
[tex]E = 0.3*3000 + 0.5*9600 + 0.2*16400 = 8980[/tex]
The expected value of the total sales projection is $8,980.
