A Market Research Team Compiled the Following Discrete Probability Distribution $$\begin{array} { | c | c | } \hline x & P ( x ) \\\hline 0 & 0.30 \\\hline 1 & 0.10 \\\hline 2 & 0.50 \\\hline 3 & 0.10 \\\hline\end{array}$$

question 12

Multiple Choice

A market research team compiled the following discrete probability distribution on the number of sodas the average adult drinks each day.In this distribution, x represents the number of sodas which an adult drinks. $$\begin{array} { | c | c | } \hline x & P ( x ) \\\hline 0 & 0.30 \\\hline 1 & 0.10 \\\hline 2 & 0.50 \\\hline 3 & 0.10 \\\hline\end{array}$$ The mean (average) value of x is _______________.

• A)1.40
• B)1.75
• C)2.10
• D)2.55
• E)3.02

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Definitions:

Call Contract

A financial derivative agreement giving the buyer the right, but not the obligation, to buy an underlying asset at a specified price before a specified date.

Break Even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Stock Price

The cost of purchasing a share of a company, fluctuating based on market conditions, company performance, and investor sentiment.

Maximum Loss

The highest possible amount an investment might lose.