Transcript Probability Concepts & Applications

Problem 2-30
Harrington Health Food stocks 5 loaves of
Neutro-Bread. The probability distribution
for the sales of Neutro-Bread is listed in
the following table. How many loaves will
Harrington sell on average?
Angie Cook
1
Expected value of a discrete probability
distribution
The expected value of a discrete
distribution is a weighted average of the
values of the random variable
Angie Cook
2
The expected value of any discrete
probability distribution is computed by
multiplying each possible value of the
random variable, X, times the
probability P(X), and summing the
results XP(x).
Angie Cook
3
X = Number of loaves sold
P(X) = Probability
XP(x) = Expected value or mean of the random variable
X
0
1
2
3
4
5
P(X)
0.05
0.15
0.20
0.25
0.20
0.15
Angie Cook
XP(x)
0.00
0.15
0.40
0.75
0.80
0.75
2.85
4