A Manager Asked Her Employees How Many Times They Had

question 37

Multiple Choice

A manager asked her employees how many times they had given blood in the last year. The results of thesurvey are given below. The random variable x represents the number of times a person gave blood and P(x) represents the probability of selecting an employee who had given blood that percent of the time. What is themean number of times a person gave blood based on this survey? $$\begin{array} { | c | c | c | c | c | c | c | c | } \hline x & 0 & 1 & 2 & 3 & 4 & 5 & 6 \\\hline P ( x ) & 0.30 & 0.25 & 0.20 & 0.12 & 0.07 & 0.04 & 0.02 \\\hline\end{array}$$

• A) 1.6
• B) 3.0
• C) 2.0
• D) 0.14

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Definitions:

Expected Utility

The anticipated value of an outcome, calculated by multiplying the utility of the outcome by the probability of its occurrence.

Risk-averse

Characterized by the preference to avoid risk, leading individuals or entities to choose the option with the least risk when faced with uncertain outcomes.

Expected Utility

A theory in economics that calculates the anticipated utility or satisfaction from a decision under conditions of uncertainty.

Utility

An indicator of pleasure or contentment obtained by customers from using products or services.