D)

Let X

1

, X

2

, and X

3

be the numbers of small, medium, and large pizzas, respectively, sold

during the day at a pizza parlor. These are random variables with expected values E(X

1

)

=25, E(X

2

) = 57, and E(X

3

) = 40. The prices of small, medium, and large pizzas are $5.5

0,

$7.60, and $9.15.

i.

What is the expected revenue from pizza sales on a given day?

ii.

Provide an interpretation of the expected value in (a).

iii.

Will the actual revenue on a given day differ from the expected value