Problema Solution
The owner of an antique store estimates that there is a(n) 45% chance she will make $2400 when she sells an antique china cabinet, a(n) 30% chance she will make $1500 when she sells the cabinet, and a(n) 25% chance she will break even when she sells the cabinet.Determine the expected gain or loss for the store.
Answer provided by our tutors
Considering that 45/100 * 2400 = 1080
and 30/100* 1500= 450
and the reamin 25% is that there is no profit what so ever.
The expected profit is 1450$.
It's kinda logical if you think about it since it's almost 50% he will make 2400.
If you need more analysis psot me a message.
The basic concept is that a propability * the price will give you your expected gain or loss