You plan to open a new Devil's Pizza Restaurant, and found these stats for similar restaurants:...
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You plan to open a new Devil's Pizza Restaurant, and found these stats for similar restaurants: Using these as probabilities for your new restaurant's profit, what is the Expected Value? Hint: Let the Random Variable X= 'possible profit in thousands of dollars. Expected Value of X: ExP(x)=(40,000) P(x=40,000) + Percent 10% 35% 45% 10% Year's Earnings $40,000 loss $0 $40,000 profit $200,000 profit You plan to open a new Devil's Pizza Restaurant, and found these stats for similar restaurants: Using these as probabilities for your new restaurant's profit, what is the Expected Value? Hint: Let the Random Variable X= 'possible profit in thousands of dollars. Expected Value of X: ExP(x)=(40,000) P(x=40,000) + Percent 10% 35% 45% 10% Year's Earnings $40,000 loss $0 $40,000 profit $200,000 profit
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Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
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