At a gas station where people can pay in cash or by credit card, 20% of people pay by credit card and 80% of people pay cash. A gallon of gas costs $4.00 if paid by card and $3.50 if paid by cash. What is the expected revenue for a gallon of gas sold at this station?

A gallon of gas costs:
- $4.00 if paid by card,
- $3.50 if paid by cash.
0.2 4.00 + 0.8 3.50 = 0.8 + 2.8 = $3.60
Answer:
The expected revenue for a gallon of gas is $3.60.

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RenatoMattice RenatoMattice · Answer 2 · 2019-04-18T03:41:28-04:00

Answer: The expected revenue for a gallon of gas sold at this station is $3.60.

Step-by-step explanation:

Since we have given that

Percentage of people who pays by credit card = 20% @@MATH_TOKEN_0@@= 0.2

Percentage of people who pays by cash = @@MATH_TOKEN_1@@ 80% = 0.8

Cost of a gallon of gas paid by card @@MATH_TOKEN_2@@ = $4.00

Cost of a gallon of gas paid by cash = $p(x_2)=$$ 3.50

So, Expected revenue for a gallon of gas sold at this station is given by

@@MATH_TOKEN_4@@

so, it becomes,

@@MATH_TOKEN_5@@

Hence, the expected revenue for a gallon of gas sold at this station is $3.60.