Interpret the Mean of a Discrete Random Variable as an Expected

question 81

Multiple Choice

Interpret the Mean of a Discrete Random Variable as an Expected Value
-A lab orders a shipment of 100 rats a week, 52 weeks a year, from a rat supplier for experiments that the lab conducts. Prices for each weekly shipment of rats follow the distribution below:
$\begin{array}{l|ccc}\text { Price } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability } & 0.2 & 0.3 & 0.5\end{array}$

How much should the lab budget for next year's rat orders assuming this distribution does not change. (Hint: find the expected price.)

• A) \(\$ 689.00\)
• B) \(\$ 13.25\)
• C) \(\$ 1325.00\)
• D) \(\$ 3,582,800.00\)

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