AnswersCREDIT RE-SEAT MNPS Integrated Math III IC S2 26-27Expected ValueQuestion 3
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Expected Value

Question 3 • CREDIT RE-SEAT MNPS Integrated Math III IC S2 26-27

A trucking company operates in three regions of the country. The table below depicts the probability that each company truck is in the region and the fuel prices per gallon. What amount should the company budget on average for a gallon of fuel across its operations? Round your answer to the nearest cent.Probability and Fuel Cost by RegionRegionProbability in RegionFuel Cost per GallonSoutheast20%$3.10Southwest30%$3.50California50%$4.05

Answer
A
$3.53
B
$3.55
C
$3.68
D
$3.70

Explanation

Find the weighted average by multiplying each region’s fuel price by the probability a truck is there, then adding: (0.20 × $3.10) + (0.30 × $3.50) + (0.50 × $4.05) = $3.695. Rounded to the nearest cent, the company should budget $3.70 per gallon, choice D.

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