Statistics: Informed Decisions Using Data (4th Edition)

by Sullivan III, Michael

Published by Pearson

ISBN 10: 0321757270

ISBN 13: 978-0-32175-727-2

Chapter 6 - Section 6.1 - Assess Your Understanding - Applying the Concepts - Page 332: 30

Answer

$E(X)=15,000$ It is expected that Shawn and Maddie will get a profit of $15,000 for reselling the property.

Work Step by Step

$E(X)=μ_X=Σ[x.P(x)]=43,000\times0.15+23,000\times0.45+3,000\times0.25+(-17,000)\times0.15=15,000$

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