5. (4) The owner of the Hiawatha Ski Resort must decide how Operate the resort herself (no snowmakers} the resort should be run this coming winter. The resort's prots for the year's skiing season depend on the amount of snowfall during the winter. Based on prior experience, the probability distribution of snowfall and the resulting prot is shown to the right. The owner recently received an offer 'om a large hotel chain to operate the resort for the winter, guaranteeing Hiawatha a $45,000 prot for the season. Aah, but the resort owner has an alternative up her sleeve; she could lease snowrnaking equipment for the season. If she leases the equipment, the resort would be able to operate full time, regardless of the amount of natural snowfall. If the owner decides on the snowmakers to supplement the natural snowfall, the prot for the season would, of course be more predictable. The prot would be $120,000 minus the cost of leasing and operating the snowmaking equipment. The leasing cost would be a at $12,000 for the season, regardless of how much it is used. She estimates that the operating cost would be $10,000 if the natural snowfall is more than 40 inches, $50,000 if it is between 20 and 40 inches, and $90,000 if it is less than 20 inches