The College Honor Society sells hot pretzels at the home football games. The pretzels are sold for $1.00 each, and the cost per pretzel is $.30. Any unsold pretzels are discarded because they will be stale before the next home game.
The frequency distribution of the demand for pretzels per game is presented as follows:
Unit Sales VolumeProbability
2.000 pretzels.10
3,000 pretzels.15
4.000 pretzels.20
5.000 pretzels.35
6.000 pretzels.20
The estimated demand for pretzels at the next home football game using an expected value approach is:
A. 4.000 pretzels.
B. 4.400 pretzels.
C. 5,000 pretzels.
D. None of the answers are correct.
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