Q.Demand of products per day for three days are $21, 19, 22$ and their respective probabilities are $0.29, 0.40, 0.35$. Profit per unit is $0.50$ paisa, then expected profits for three days are :

Multiply each day's demand by its probability and by the profit per unit ($0.50$): $3.045,\ 3.8,\ 3.85$.

Formula. Expected profit $= (\text{demand}) \times (\text{probability}) \times (\text{profit per unit})$, with profit per unit $= 0.50$.

Day 1: $21 \times 0.29 \times 0.50 = 21 \times 0.145 = 3.045.$ …