Fast Service Store has maintained daily sales records on the various size \"Cool
ID: 2900896 • Letter: F
Question
Fast Service Store has maintained daily sales records on the various size "Cool Drink" sales.
"Cool Drink" Price Number Sold
$0.50 75
$0.75 120
$1.00 125
$1.25 80
Total 400
Assuming that past performance is a good indicator of future sales,
(a) what is the probability of a customer purchasing a $1.00 "Cool Drink?"
(b) what is the probability of a customer purchasing a $1.25 "Cool Drink?"
(c) what is the probability of a customer purchasing a "Cool Drink" that costs greater than or equal to $1.00?
(d) what is the expected value of a "Cool Drink"?
(e) what is the variance of a "Cool Drink"?
Explanation / Answer
(a) P = 125/400 = 0.3125
(b) P = 80/400=0.2
(c) P = (125+80)/400 = 0.5125
(d) Expected Value = Mean = {(0.5*75)+(0.75*120)+(1*125)+(1.25*80)}/400 = $0.8925
(e) Variance = {(0.5-0.8925)^2}*75 + {(0.75-0.8925)^2)*120 + {(1.0-0.8925)^2}*125 + {(1.25-0.8925)^2}*80 = 25.66075
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