Question

a trucking company operates in three regions of the country. the table below 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%	$3.10
southwest	30%	$3.50
california	50%	$4.05

$3.53
$3.55
$3.68
$3.70

Explanation:

Step1: Convert probabilities to decimals

$20\% = 0.2$, $30\%=0.3$, $50\% = 0.5$

Step2: Calculate weighted - average

$0.2\times3.10+0.3\times3.50 + 0.5\times4.05$
$=0.62+1.05 + 2.025$
$=3.695$

Answer:

$\$3.70$