Question

Text Question 1.1 Question Help a y the rocks will be worth $12.000. However, the frocks we viewed as passe, they will be worth only $2.000 Mme Gisele's boutique in Cleveland, Ohio is planning to sell a Parisian frock if the puble view it as being the w the probability that they are stylish is 20%. what is the expected value of the frocks? The expected value of the frocks (EV) Eve n your response round two decimal places)

Answer 1

Answer:

If Frock is latest style than Cl=12000

and probability of Latest style =Pl=20%

If Frock is passe than Cp=2000

and probability of passe =Pp=1-20%=80%

Then EV= Cl*Pl+Cp*Pp=12000*20%+2000*80=$4000