Question

number of
hybrids
probability
.32
0
.28
1
.15
2
.11
3
.08
4
.06
5
weekly sales
a car dealer buys hybrids for $21,000 each and sells them for $24,500 each. find his expected weekly profit

Explanation:

Step1: Calculate profit per car

Profit per car = Selling price - Cost price = \(24500 - 21000=\$3500\)

Step2: Calculate expected number of cars sold

Let \(X\) be the number of cars sold.

$$
LATEXBLOCK0
$$

Step3: Calculate expected weekly profit

Expected weekly profit \(=3500\times E(X)\)

$$ 3500\times1.53 = 5355 $$

Answer:

\(\$5355\)