Aheavy-equipment salesperson can contact either one or two customers per day with probability 1/3 and 2/3, respectively. each contact will result in either no sale or a $50,000 sale, with the probabilities 0.9 and 0.1, respectively. find the mean and standard deviation of the daily sales. (hint: first obtain the probability distribution for daily sales.)

The mean of daily sales is $8,333.33 and the standard deviation of daily sales $19,507.83.

We arrive at the answer as follows:

1. Obtaining probability distribution for daily sales

On any day, the number of sales may be either 0 ,1 or 2.

We compute each of the probabilities as:

Since we know the P(X=0) and P(X=1), we can calculate P(X=2) as:

Now that we have the Probability distribution of daily sales, we can compute the mean of daily sales as follows:

Let V be value of sales per day, the mean is

Daily Sales       P          Value of sales -v                       v*P

     0           0.8400                     0                                        0

    1             0.1533               50000                           7666.666667

    2              0.0067              100000                              666.666667

Total               1                                                             8333.333333

The total in the table above is the mean of daily sales.

We calculate Standard Deviation as

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).