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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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