Assignment:
Lobsters vary in sizes. The bigger the size, the more valuable the lobster per pound (a 6-pound lobster is more valuable than two 3-pound ones). Lobster merchants will sell entire boatloads for a certain price. The boatload has a mixture of sizes. Suppose the distribution is as follows:
| x(Pound) |
P(x) |
v(x)($) |
1/2
|
0.1
|
2
|
3/4
|
0.1
|
2.5
|
1
|
0.3
|
3.0
|
1 1/4
|
0.2
|
3.25
|
1 1/2
|
0.2
|
3.40
|
1 3/4
|
0.05
|
3.60
|
2
|
0.05
|
5.00
|
What is the fair price for the shipload?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.