I am having troubles understanding this basic problem and would like to see if anyone could help me out.
I have two boxes: one red, one blue. Depending on what box I pick, I have the potential to make some money. However, most the time the boxes will be empty. Here are the associated %s that I could pick a box with some money in it:
Red Box (In Dollars)
20% : 1,600
1% : 2,500
1% : $1,250
78% : 0
Blue Box (In Dollars)
10% : 1,600
3% : 2,500
5% : 1,250
82% : 0
I am trying to calculate the amount each box represents. I tried the weighted average but for some reason it doesn't seem right...
Red Box:
(.2*1600)+(.01*2500)+(.01*1250)+(.78*0) = $357.50
Blue Box:
(.1*1600)+(.03*2500)+(.05*1250)+(.82*0) = $297.50
Am I conceptually wrong here or is this right?