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?

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% = 0.2

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

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

Cost of a gallon of gas paid by cash = $ 3.50

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

so, it becomes,

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

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