A farmer has 90 lbs of apples and 80 lbs of potatoes for sale. The market price

Question

A farmer has 90 lbs of apples and 80 lbs of potatoes for sale. The market price for apples (per pound) each day is a random variable with a mean of 0.6 dollars and a standard deviation of 0.2 dollars. Similarly, for a pound of potatoes, the mean price is 0.4 dollars and the standard deviation is 0.2 dollars. It also costs him 4 dollars to bring all the apples and potatoes to the market. The market is busy with shoppers, so assume that he'll be able to sell all of each type of produce at that day's price. Complete parts a) through d) Make sure to consider all necessary assumptions before calculating. D. A price per pound of apples, ° C. A-pounds of apples sold. b) Find the mean. The mean profit is dollars Enter your answer in the answer box and then click Check Answer. P number of Ib of potatoes sold, Profit 0.6A+0.4P P price per pound of potatoes. Profit-90A +80P-4 2

Explanation / Answer

b) The mean profit here is computed as:

= Mean revenue from selling all apples + Mean revenue from selling all potatoes - Cost to bring all apples and potatoes.

= 90*0.6 + 80*0.4 - 4

= 82

therefore the mean profit amount here is $82

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