sale the probability of it being of variouse sizes is : ...
The probability of selling one of the listed TVs is: 0.15+0.3+0.4+0.1 = 0.75,
so the probability that it is larger (there are no smalle) is 0.25.
If he makes a sale the expectation is:2. Luis's manager offers him a selling incentive. He agrees to give Luis $25 for every 30" television. If Luis sells a larger television, the manager agrees to give him $50. What is the mathematical expectation for this payment plan?
25*P(30) + 50*P(>30) = 0.1*25 + 0.25*50 = $31.25
where P(30) denote the probability that the sale is of a 30" TV and P(>30)
is the probability that the sale is of a larger TV.