Answer to Question #83657 in Statistics and Probability for aislinn

Question

Question 3

An Italian Ice (snowcone) retailer is examining his profits for the spring season of the previous year. He realizes that his sales are based on the daily weather: sunny, average, or cold. He estimates that this year the probability of it being sunny is 0.2, average 0.5, and cold 0.3. His gross sales on these three types of days average $50, $35, and $10 respectively.

a. Find the expected income in any one day.
b. If the average supplies cost $18, what is the expected daily profit?