A lab orders a shipment of 100 rats a week, 52 weeks a year, from a rat supplier for experiments that the lab conducts. prices for each weekly shipment of rats follow the distribution below: price $10.00 $12.50 $15.00 probability 0.4 0.15 0.45 how much should the lab budget for next year's rat orders, assuming the distribution does not change. (hint: find the expected price.) do not put a dollar sign in the box of your answer. answer to 2 decimal places.

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Lena Joyce

Business

9 March, 13:04

A lab orders a shipment of 100 rats a week, 52 weeks a year, from a rat supplier for experiments that the lab conducts. prices for each weekly shipment of rats follow the distribution below: price $10.00 $12.50 $15.00 probability 0.4 0.15 0.45 how much should the lab budget for next year's rat orders, assuming the distribution does not change. (hint: find the expected price.) do not put a dollar sign in the box of your answer. answer to 2 decimal places.

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Makaila Ware · Answer 1

Assuming the distribution does not change, the lab should budget $656.50 for next year's rat orders.

We calculate expected price as follows:

Expected Price = (10*0.4) + (12.5 * 0.15) + (15*0.45)

Expected Price = $ 12.625 (4+1.875+6.75)

Since the expected price is for a week's shipment of rats,

Annual Expense = Expected Price * No. of weeks per year

Annual Expense = $ 12.625 * 52

Annual Expense = $656.5