MHB How Do You Calculate Average Revenue Per Group?

AI Thread Summary
To calculate average revenue per group, the probabilities and prices of each item ordered must be multiplied and summed. For Group A, the average revenue is calculated as (5*0.5) + (6*0.4) + (7*0.1), resulting in 5.6. For Group B, the calculation is (5*0.3) + (6*0.3) + (7*0.1), which needs to be completed for the final average revenue. The discussion highlights the importance of accurately applying probability to revenue calculations. Understanding these calculations is crucial for determining average revenue effectively.
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Hi, I'm currently stuck on a homework question and I was hoping if I could get some help.

Group A has 50% chance of ordering french fries (price: 5),40%chanceoforderingmilkshake(price:6), and 10% chance of ordering a burger (price: 7).GroupBhas30%chanceoforderingfrenchfries(price:5), 30% of chance of ordering a milkshake (price: 6),and10%chanceoforderingaburger(price:7) .

What is the average revenue per group?

Not sure if my work is correct: Avg revenue for Group A: (5∗50%)+(6 * 40%) + (7∗10%)=5.6.
Avg revenue for Group B: (5∗30%)+(6 * 30%) + ($7 *10%)
 
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Re: Avg Revenue Per Group

humm0s said:
Hi, I'm currently stuck on a homework question and I was hoping if I could get some help.

Group A has 50% chance of ordering french fries (price: 5),40%chanceoforderingmilkshake(price:6), and 10% chance of ordering a burger (price: 7).GroupBhas30%chanceoforderingfrenchfries(price:5), 30% of chance of ordering a milkshake (price: 6),and10%chanceoforderingaburger(price:7) .

What is the average revenue per group?

Not sure if my work is correct: Avg revenue for Group A: (5∗50%)+(6 * 40%) + (7∗10%)=5.6.
Avg revenue for Group B: (5∗30%)+(6 * 30%) + ($7 *10%)

Did you have a question about the response already supplied?

https://www.freemathhelp.com/forum/threads/110278-Average-Revenue-Per-Group
 

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