I am having a little trouble with this homework question.
The Alliance Corp. expects to sell the following number of units of copper cables at the prices indicated, under three different scenarios in the economy. The probability of each outcome is indicated. What is the expected value of the total sales projection?
Outcome Probability Units Price
A .30 200 $15
B .5 320 $30
C .2 410 $40
From my understanding of my text sales projection would be calculated by:
A: 200 * $15 = 3000
B: 320 * $30 = 9600
C: 410 * $40 = 16400
However I do not know how to calculate the expected value of the total sales projection using probability.
Please Help!!!!!
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