Question

The Fairview Chamber of Commerce researched the number of employees working at local companies. Number of employees Number of companies 273 1 350 4 357 1 873 4 X is the number of employees that a randomly chosen company has. What is the expected value of X? Write your answer as a decimal.

Answer 1

In order to find the expected value of x, we just need to divide the total number of employees by the total number of companies:

$\begin{gathered} E(x)=\frac{273\cdot1+350\cdot4+357\cdot1+873\cdot4}{10} \\ E(x)=\frac{5522}{10} \\ E(x)=552.2 \end{gathered}$

So the expected value of x is 552.2.