A Lab Orders a Shipment of 100 Frogs Each Week $$\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.25 & 0.45 & 0.3\end{array}$$

question 118

Multiple Choice

A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the distribution below: $$\begin{array} { l | c c c } \text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.25 & 0.45 & 0.3\end{array}$$ Suppose the mean cost of the frogs is $12.63 per week. Interpret this value.

• A) The average cost for all weekly frog purchases is $12.63.
• B) Most of the weeks resulted in frog costs of $12.63.
• C) The median cost for the distribution of frog costs is $12.63.
• D) The frog cost that occurs more often than any other is $12.63.

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Definitions:

Guest-Days

A metric used in the hospitality industry, calculating the total number of guests multiplied by the number of days they stayed.

Total Cost

the aggregate of all costs, both fixed and variable, incurred in producing goods or services.

Static Budget

A budget based on a fixed set of assumptions and not adjusted for actual activity levels.

Guest-Days

A measure used in the hospitality industry to quantify the total number of days guest have stayed.