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Leah of Leah's Running Store has asked you to help her determine the expected value of the store's sales next year. The range of sales
Leah of Leah's Running Store has asked you to help her determine the expected value of the store's sales next year. The range of sales that could be generated by the store and Leah's estimated probability of the store attaining these sales are as follows:
SalesEstimated probabilityNil5%$700,00010%$900,00070%$1,100,000 to $1,300,00015%, with all outcomes in the range equally probable
What is the expected value of the store's sales next year?
a.$900,000
b.$880,000
c.$865,000
d.$895,000
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