Question

As a manufacturer of a flu vaccine, you must decide how many doses of vaccinations to make. You know the following probability distribution describes the distribution of demand for vaccinations: demand will be 11 million with probability 0.44, demand will be [VARCCe] million with probability 0.28, otherwise, demand will be 20 million. What is the expected demand for vaccinations?

Suppose that the number of guests per month that members of a country club bring to golf is given by the following probability distribution:
55% of the members don't have any guests each month, 15% of the members have 1 guest per month to the club; 11% of the members have 2 guests per month; and the remaining members have 3 guests per month.
What is the expected value of the number of guests that members bring out each month? (please express your answer using 2 decimal places)

Suppose the following distribution describes the possible returns from a portfolio in 1 year: there is a 36% chance of the portfolio return being -9%, a 13% chance the portfolio return is 4%, a 11% chance the portfolio return is 11%, and otherwise, the portfolio return will be 15%. What is the expected return on the portfolio? (please express your answer as a percentage and use 2 decimal places)

Answer 1

in general expected value=sum of all( Probability of that event* return/value of that event)

Expected demand for vaccination: 11 million *0.44(probability of demand) +VARCCe million* 0.28 + 20 million*.28 (Not sure of the value of Varcce million. is there an error in typing? should be a numerical figure to calculate expeceted value)

Expeceted value of the number of guests that members bring out each month: 0*.55 + 1*.15 + 2*.11 + 3*.19= 0.94

Expecetd return on portfolio: 36%*-9% + 13%*4% + 11%*11% + 40%*15%= 4.49%