Question

Select the correct answer.
This table gives sales data for an electronics store in any given month. It lists the probabilities of the number of items purchased in a single transaction and the average amount spent per transaction.

Number of Items
Purchased in a
Single Transaction Probability Average
Amount
Spent
1 0.30 $80
2 0.43 $70
3 0.12 $75
4 or more 0.15 $80

Based on the data provided, which type of transaction is likely to bring in the most income during a month?

A.
a transaction with one item

B.
a transaction with two items

C.
a transaction with three items

D.
a transaction with four or more items

Answer 1

B. A transaction with two items.

Reason: expected revenue contribution = probability × average amount. For two items: 0.43 × $70 = $30.10, which is higher than for the other transaction types.