Probabilities- Statisctics, PLS HELP

Probability theory and statistics

Probabilities- Statisctics, PLS HELP

Postby Guest » Sun Jan 14, 2018 7:23 am

An individual who owns the ice cream concession at a sporting event can expect to net \$600 on the sale of ice cream if the day is sunny, but only \$300 if it is cloudy, and \$100 if it rains. The respective probabilities for those events are 0.6,0.3 and 0.1 respectfully. What is his expected profit?

So from my try Let's say X is the profit in a particular day.

P(X=100)=0.1
P(X=300)=0.3
P(X=600)=0.6

Thus, E(X)= 100(0.1) + 300(0.3) + 600(0.6)= $460

I think this is the correct solution but honestly I am not sure and I would be obliged if anyone can confirm or suggest different solution!
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