A national retailer has entered into an agreement with a publisher to begin selling a food and beverage magazine on a trial basis. The retailer pays $1.95 and sells the magazine for $3.49. During the trial period, the retailer placed 10 copies of the magazine in each of 150 stores throughout the country. The file titled Sold contains the number of magazines sold in each of the stores.

a. Produce a frequency distribution for these data.

Convert the frequency distribution into a probability distribution using the relative frequency assessment method.

b. Calculate the expected profit from the sale of these 10 magazines.

c. The retailer is negotiating returning all unsold magazines for a salvage price. Determine the salvage price that will be needed to yield a positive profit.