66. Suppose that about 85% of graduating students attend their graduation. A group of 22 graduating students is randomly chosen. a. In words, define the random variable X. b. List the values that X may take on. c. Give the distribution of X. X- d. How many are expected to attend their graduation? e. Find the probability that 17 or 18 attend. f. Based on numerical values, would you be surprised if all 22 attended graduation? Justify your answer numerically. Additional Information Big Spenders Inc. has been working on diversifying its portfolio of investments and requires accounting advice for a decision between two car cleaning and detailing companies. Your responsibility is to perform a comparative analysis of the profitability of two potential equity investments. Your engagement manager on this job has given you a brief background on the operations of the two companies: Auto Wash Bot Ltd. (AWB) has recently completed the research and development of a new touch screen app for all mobile devices. This new technology is both more user friendly than the current technology on the market. Auto Wash Bot Ltd has just signed a major contract to provide the Auto Wash Bot terminal to a major producer of mobile devices. The founder of the business would like to sell a 50% interest in the business for $100,000 in order to finance further expansion of operations. Popeye's Muscle Wash Ltd (PMWL) is a self-service, coin-operated car wash located in a busy residential area. The company provides all of the services of a typical car wash, including soap, wax. vacuuming as well as pressure washing. PMWL. has been long established and enjoys the loyalty and repeat business of many local residents. The current owner is getting up in age and would like to sell 100% ownership interest in the business for $100.000 to pursue retirement. The current year's income statement is consistent with prior years. One of the first tasks in the analysis of the potential equity acquisition is an assessment of each company's current and future profitability. Your manager has provided you with coples of each company's income statement (see below). Next, you are to calculate the expected return on the investment for each company. You have been asked to discuss any other issues that you believe are relevant to the investment decision. The Consulting Manager would like you to prepare the report and have it on his desk for review first thing tomorrow morning. Once reviewed, this report will be submitted to Big Spenders inc. in order to support their decision. Auto Wash Bot Ltd. Revenue $375,000 Cost of Goods Sold 86,250 Gross Profit 288,750