Sue Anne Owns a Medium-Sized Business What Is the Expected Value of the Number of Employees

question 206

Multiple Choice

Sue Anne owns a medium-sized business.The probability model below describes the number of employees that may call in sick on any given day. $$\begin{array} { c | c c c c c } \text { Number of Employees Sick } & 0 & 1 & 2 & 3 & 4 \\\hline \mathrm { P } ( \mathrm { X } = \mathrm { x } ) & 0.1 & 0.4 & 0.3 & 0.15 & 0.05\end{array}$$ What is the expected value of the number of employees calling in sick each day?

• A)2.00
• B)1.00
• C)1.65
• D)1.70
• E)1.75

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Definitions:

Unemployment

The condition of being without a job, while actively looking for work.

Production Possibilities

The various combinations of goods and services that an economy can produce when all its resources are fully and efficiently employed, illustrated by the production possibilities frontier.

Capital Goods

Assets utilized by businesses to create wealth through the manufacturing of goods and services, including buildings and tools.

Opportunity Cost

The sacrifice of potential rewards from different possibilities upon opting for one alternative.