Homework SourseA craft store has 25 assorted grab bags on sale for 300 each
A craft store has 25 assorted grab bags on sale for $3.00 each. Fifteen of the bags contain $3.00 worth of merchandise, six contain $2.00 worth, two contain $5.00 worth of merchandise, and there are one each containing $10.00 and $20.00 worth of merchandise. Suppose that you purchase one bag; what is your expected gain or loss? Round the answer the nearest cents
A craft store has 25 assorted grab bags on sale for $3.00 each. Fifteen of the bags contain $3.00 worth of merchandise, six contain $2.00 worth, two contain $5.00 worth of merchandise, and there are one each containing $10.00 and $20.00 worth of merchandise. Suppose that you purchase one bag; what is your expected gain or loss? Round the answer the nearest cents
Solution
Consider:
Thus, the mean worth of each bag is
Mean = Sum(xf) / Sum(f) = 3.88
Thus, the expected gain is $3.88 - 3.00 = $0.88 [ANSWER]
| x | f | x f |
| 3 | 15 | 45 |
| 2 | 6 | 12 |
| 5 | 2 | 10 |
| 10 | 1 | 10 |
| 20 | 1 | 20 |
