Thread: Apple Pie Probability

Here is another one Gurus.....
An apple pie Company knows that the number of pies sold each day varies from day to day. The owner believes that on 50% of the days she sells 100 pies. On another 25% of the days she sells 150 pies, and she sells 200 pies on the remaining 25% of the days. To make sure she has enough product, the owner bakes 200 pies each day at a cost of $1.50 each. Assume any pies that go unsold are thrown away at the end of the day. If she sells the pie for $3 each, find the probability distribution for her daily net profit.

Originally Posted by Allenge

Here is another one Gurus.....
An apple pie Company knows that the number of pies sold each day varies from day to day. The owner believes that on 50% of the days she sells 100 pies. On another 25% of the days she sells 150 pies, and she sells 200 pies on the remaining 25% of the days. To make sure she has enough product, the owner bakes 200 pies each day at a cost of $1.50 each. Assume any pies that go unsold are thrown away at the end of the day. If she sells the pie for $3 each, find the probability distribution for her daily net profit.

If she sells 100 pies then the net profit is (-1.50)(100) + (1.50)(100) = $0.

If she sells 150 pies then the net profit is (-1.50)(50) + (1.50)(150) = $150.

If she sells 200 pies then the net profit is (-1.50)(0) + (1.50)(200) = $300.

Therefore ....