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    Find expected profit of sales distributions for skim milk gallons

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    If you purchase 5 gallons of skim milk for $2 per gallon and sell it for $3 per gallon and receive a refund for unsold milk of $1 per gallon.

    y = Profit = NoSold(PriceSell-PriceRefund) + NoPurchased*(PriceRefund-PriceYouPurchasedFor)

    What is the expected profit or loss for the following distribution of sales?

    x 0 1 2 3 4 5
    f(x) 0.1 0.2 0.3 0.2 0.1 0.1

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    https://brainmass.com/statistics/probability/expected-profit-sales-distributions-skim-milk-gallons-375876

    Solution Preview

    Total cost = 5 * 2 = $10.00
    Suppose X denotes the number of gallons sold. Then profit is given by Y = X *3 + (5-X)*1 ...

    Solution Summary

    The expert finds the expected profit of sales distribution for skim milk gallons.

    $2.49

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