AQR Quick Question 13.3: Lucrative Lumber

Woody Pine, a lumber wholesaler, is planning to purchase a load of lumber. He calculates that the probabilities of reselling the load for $9,500, $9,000, or $8,500 are .25, .60, and .15, respectively. On average, how much can Woody sell the lumber for? In the applet below, each dot in the dot plot represents the mean price of 100 random simulated "resellings." Explore the average reselling price by changing the probabilities in cell B2 and B3 (B4 will automatically update).

 

Steve Phelps

 
Resource Type
Activity
Tags
aqr  arithmetic-mean  dot-plot  practice  probability  question  quick 
Target Group (Age)
15 – 18
Language
English (United States)
 
 
GeoGebra version
4.4
Views
11353
Report a problem
 
 
© 2018 International GeoGebra Institute