Explore BrainMass
Share

Expected Value

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Dan Woodward is the owner and manager of Dan's Truck Stop. Dan offers free refills on all coffee orders. He gathered the following information on coffee refills: there is a 30% chance that a customer will not get a refill, a 40% chance that a customer will get one refill, a 20% chance that a customer will get two refills, and a 10% chance that a customer will get three refills. How many refills can Dan expect a customer to get?

© BrainMass Inc. brainmass.com October 15, 2018, 10:13 pm ad1c9bdddf - https://brainmass.com/statistics/central-tendency/finding-expected-value-example-problem-266590

Solution Preview

Please see attached file:
Dan Woodward is the owner and manager of Dan's Truck Stop.  Dan offers free refills on all coffee orders. He gathered the following information on ...

Solution Summary

Calculates expected value using probability distribution.

$2.19