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Leah of Leah's Running Store has asked you to help her determine the expected value of the store's sales next year. The range of sales that could be generated by the store and Leah's estimated probability of the store attaining these sales are as follows:
Sales Estimated probability
Nil 5%$700,000 10%$900,000 70%$1,100,000 to $1,300,000 15%, with all outcomes in the range equally probable
Problem 1: What is the expected value of the store's sales next year?
a. $900,000 b. $865,000 c. $880,000 d. $895,000
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