Average Revenue Per Group

Average Revenue Per Group

Postby Guest » Wed Feb 28, 2018 2:18 pm

Hi, I'm currently stuck on a homework question and I was hoping if I could get some help.

Group A has 50% chance of ordering french fries (price: \$5), 40% chance of ordering milkshake (price: \$6), and 10% chance of ordering a burger (price: \$7) .
Group B has 30% chance of ordering french fries (price: \$5), 30% of chance of ordering a milkshake (price: \$6), and 10% chance of ordering a burger (price: $7) .

What is the average revenue per group?

Not sure if my work is correct: Avg revenue for Group A: ($5 * 50%) + ($6 * 40%) + ($7 *10%) = $5.6.
Avg revenue for Group B: ($5 * 30%) + ($6 * 30%) + ($7 *10%)

Guest
 

Re: Average Revenue Per Group

Postby Guest » Fri Mar 02, 2018 3:05 am

If he orders 1 item.
The average is $\frac{(5\cdot 50%) + (6 \cdot 40%) + (7 \cdot 10%)}{3}$
If he orders 3 items at once then you are right I think.

Guest
 


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