Consider the Following to Answer the Question(s) Below

question 25

Multiple Choice

Consider the following to answer the question(s) below:
A company believes that there will be a 50% chance of making a profit of $1,000, a 30% chance of making a profit of $1500 and a 20% chance of making a profit of $2,000.
-What is the expected profit?

• A) $1,000
• B) $300
• C) $2,000
• D) $1,350
• E) $4,500

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter with a specified degree of confidence.

Encyclopedia Salespersons

Individuals whose job is to sell printed or digital encyclopedias, often door-to-door or via direct sales techniques.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, indicating how spread out the data points are from the mean.

Confidence Interval

A set of numbers, based on statistics from a sample, that has a high probability of including the value of a not-yet-known parameter of the population, considering a certain level of confidence.