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(a) Due to the advent of new models on the market, a car dealership has lowered the prices on last year's models to clear its
(a) Due to the advent of new models on the market, a car dealership has lowered the prices on last year's models to clear its holdover inventory. With prices slashed, a salesman estimates the following probability distribution of X, the total number of cars that he will sell next week:
Value of X | P(x) |
0 | 0.05 |
1 | 0.15 |
2 | 0.35 |
3 | 0.25 |
4 | 0.20 |
Suppose the salesman is paid a fixed weekly wage of $250 per week plus a $200 commission for each car he sells:
(ii) What is the probability his pay exceeds $500 next week?
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