The bicycle shop will be offering 2 specially pricedchildren\'s models at a side

Question

The bicycle shop will be offering 2 specially pricedchildren's models at a sidewalk sale. The basic model will sell for$120 and the deluxe model will sell for $150. Past experienceindicates that sales of the basic model will have a mean of 5.4bikes with a standard deviation of 1.2, and sales of the deluxemodel wil have a mean of 3.2 bikes with a standard deviationof 0.8 bikes. The cost for setting up for the sidewalk sale is$200.
A) Define random variables and use them to express thebicycle shop's net income. B) What's the mean of the net income? C) What's the standard deviation of the net income? The bicycle shop will be offering 2 specially pricedchildren's models at a sidewalk sale. The basic model will sell for$120 and the deluxe model will sell for $150. Past experienceindicates that sales of the basic model will have a mean of 5.4bikes with a standard deviation of 1.2, and sales of the deluxemodel wil have a mean of 3.2 bikes with a standard deviationof 0.8 bikes. The cost for setting up for the sidewalk sale is$200.
A) Define random variables and use them to express thebicycle shop's net income. B) What's the mean of the net income? C) What's the standard deviation of the net income?

Explanation / Answer

X1 = # of Basic models sold X2 = # of Deluxe models sold Net Income = $120X1 + $150X2 - $200 Mean Net Income = $120(5.4) + $150(3.2) - $200 = $1128 - $200 =$928 net income = [(120*1.2)2 +(150*.8)2] = [1442+1202] =$187.45

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.