7
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Question 7 • Mathematics III

A trucking company operates in three regions of the country. The table 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 Region Region Probability in Region Fuel Cost per Gallon Southeast 20 percent 3 point 1 0 dollars Southwest 30 percent 3 point 5 0 dollars California 50 percent 4 point 0 5 dollars

Answer
A
3 point 5 5 dollars
B
3 point 6 8 dollars
C
3 point 7 0 dollars
D
3 point 5 3 dollars

Explanation

Find the weighted average by multiplying each fuel price by the probability of being in that region, then adding: (0.20 × $3.10) + (0.30 × $3.50) + (0.50 × $4.05) = $0.62 + $1.05 + $2.025 = $3.695. Rounded to the nearest cent, the company should budget $3.70 per gallon, choice B.

AI-written and checked against the verified answer.

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