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Expected Value Example

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Oct 22, 2020
5:44

Mamma Temte bakes six pies a day that cost $2 each to produce. On 38% of the days she sells only two pies. On 22% of the days, she sells 4 pies, and on the remaining 40% of the days, she sells all six pies. If Mama Temte sells her pies for $4 each, what is her expected profit for a dayʹs worth of pies? [Assume that any leftover pies are given away.]

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