Interpret the Mean of a Discrete Random Variable as an Expected

question 78

Multiple Choice

Interpret the Mean of a Discrete Random Variable as an Expected Value
-Mamma Temte bakes six pies a day that cost $\$ 2$ each to produce. On $31 \%$ of the days she sells only two pies. On $39 \%$ of the days, she sells 4 pies, and on the remaining $30 \%$ of the days, she sells all six pies. If Mama Temte sells her pies for $\$ 5$ each, what is her expected profit for a day's worth of pies? [Assume that any leftover pies are given away.]

• A) \(\$ 7.90\)
• B) \(\$ 19.90\)
• C) \(- \$ 7.00\)
• D) \(- \$ 8.02\)

Recognize the classification of accounts such as assets, liabilities, revenues, and expenses.

Understand how management can utilize ledger accounts to make informed decisions.

Understand the principles and characteristics that guide financial reporting.

Identify the elements of financial statements and their measurements.

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Definitions:

Auto Parts Industry

Refers to the sector of the economy focused on the manufacturing, distribution, and retailing of vehicle parts and accessories.

Significantly Lesser Price

A sale or transaction price that is considerably lower than the usual or market value.

Franchisor

The owner of the trade name or trademark in a franchise.

Franchisee

An individual or company that is granted the right by a franchisor to conduct business under an established brand's trademark and business model.