Mathematics, 12.11.2020 18:30 tommyaberman
Suppose the owner of a local apple orchard has 4 half-bushels of apples to sell. He loads them on his truck, and drives his route, stopping at stores along the way attempting to sells the apples. Suppose:
- Each half-bushel is sold for $40.
- It will cost $15 of gas to drive the route.
Historically, the orchard owner knows he will have a 40% chance of making no sales, a 30% chance of selling 1 half-bushel, a 10% chance of selling 2 half-bushels, and a 10% chance of selling 3 half-bushels.
(a) Calculate the orchard owner’s expected profit from driving the route.
(b) Calculate the standard deviation of the profit from driving the route.
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