Marketing estimates that a new instrument for the analysis of soil samples will

Question

Marketing estimates that a new instrument for the analysis of soil samples will be very successful, moderately successful, or unsuccessful, with probabilities 0.4, 0.4, and 0.2, respectively. The yearly revenues associated with a very successful, moderately, or unsuccessful product are $10 million, $5 million, and $1 million, respectively. Let the random variable X denote the yearly revenue of the product. Determine the probability mass function of X. Round your answers to one decimal place (e.g. 98.7) Probability Mass Function of X f(x) P( X-$10 million) P( X=$5 million) = P( X=$1 million) =

Explanation / Answer

from the data

P(very successful)=0.4

P(moderately successful) = 0.4

P(unsuccessful) = 0.2

The yearly revenue associate with very successful is $10 million

The yearly revenue associate with moderately successful is $5 million

The yearly revenue associate with unsuccessful is $1 million

P($10 million) =P(very successful) =0.4

P($5 million) = P(moderately successful) = 0.4

P($1 million) = P(unsuccessful) = 0.2

Probability mass function

x f(x) P($10 million) 0.4 P($5 million) 0.4 P($1 million) 0.2

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