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    ebonyangel30's Avatar
    ebonyangel30 Posts: 1, Reputation: 1
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    #1

    Jul 19, 2009, 10:12 AM
    Expected value if the total sales projection
    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!! :(
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 20, 2009, 10:15 PM

    Just multiply each by the probability given and add them up.
    amontoyasilver's Avatar
    amontoyasilver Posts: 1, Reputation: 1
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    #3

    Sep 7, 2011, 06:52 PM
    I think we are taking the same class. This question does not reflect what is in the book. The Probability is throwing me off. Any luck with the answer. - Angie
    elreplicador's Avatar
    elreplicador Posts: 2, Reputation: 1
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    #4

    Jan 11, 2012, 12:33 PM
    Morgaine300 is right! P1*A + P2*B + P3*C. you have to remember: P1 + P2 + P3 = 1!


    Help! I need to make an algorithm in C++ to calculate the expected value!
    Can anyone help me?
    sprix's Avatar
    sprix Posts: 1, Reputation: 1
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    #5

    Jul 7, 2012, 06:06 AM
    You need to multiply each projection by the probability listed before adding them
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