Levinsons Department Store is having a special sale this weekend. Customers charging purchases of more than $50

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Levinson’s Department Store is having a special sale this weekend. Customers charging purchases of more than $50 to their store credit card will be given a special Levinson’s Lottery card. The customer will scratch off the card, which will indicate the amount to be taken off the total amount of the purchase. Listed below are the amount of the prize and the percent of the time that amount will be deducted from the total amount of the purchase.

Prize Amount                        Probability
$ 10.......................................................0.50
25..........................................................0.40
50..........................................................0.08
100........................................................0.02


a. What is the mean amount deducted from the total purchase amount?

b. What is the standard deviation of the amount deducted from the total purchase?

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Related Book For  book-img-for-question

Basic Statistics For Business And Economics

ISBN: 9781260187502

9th Edition

Authors: Douglas A. Lind, William G Marchal, Samuel A. Wathen

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