select the correct answer. an ice cream parlor serves ice cream cones, milkshakes, and waffles with ice…

select the correct answer. an ice cream parlor serves ice cream cones, milkshakes, and waffles with ice cream. the cost of an ice cream cone is $1.20, the cost of a milkshake is $2.00, and the cost of a waffle with ice cream is $3.50. if 50% of the customers choose an ice cream cone, 30% choose a milkshake, and 20% choose a waffle with ice cream, what is the expected value of the cost of one item served at the parlor?\n\na. $0.99\nb. $1.00\nc. $1.90\nd. $2.00

select the correct answer. an ice cream parlor serves ice cream cones, milkshakes, and waffles with ice cream. the cost of an ice cream cone is $1.20, the cost of a milkshake is $2.00, and the cost of a waffle with ice cream is $3.50. if 50% of the customers choose an ice cream cone, 30% choose a milkshake, and 20% choose a waffle with ice cream, what is the expected value of the cost of one item served at the parlor?\n\na. $0.99\nb. $1.00\nc. $1.90\nd. $2.00

Answer

Answer:

C. $$1.90$

Explanation:

Step1: Recall expected - value formula

$E(X)=\sum_{i}x_ip_i$

Step2: Identify values

$x_1 = 1.20$, $p_1=0.5$; $x_2 = 2.00$, $p_2 = 0.3$; $x_3=3.50$, $p_3 = 0.2$

Step3: Calculate expected value

$E(X)=1.20\times0.5 + 2.00\times0.3+3.50\times0.2$ $E(X)=0.6 + 0.6+0.7$ $E(X)=1.90$