A sales analyst listed the probabilities of profits and losses in dollars for a certain company. Find the mean for the probability distribution ask, -500, -250, 0, 250, 500 PX, 0.076, 0.191, 0.265, 0.316, 0.152.
To find the mean for a probability distribution, you multiply each value by its corresponding probability and sum up the results.
Mean (μ) = (-500 * 0.076) + (-250 * 0.191) + (0 * 0.265) + (250 * 0.316) + (500 * 0.152)
Mean (μ) = -38 + (-47.75) + 0 + 79 + 76
Mean (μ) = 69.25
So, the mean for the probability distribution is 69.25.