A shipping company has an overstock of packing material it wishes to sell via an auction. The company has 7.25 tons of the packing material and estimates that the material will sell for somewhere between $0.40 per pound and $0.60 per pound.

a. Compute the probability that the company will receive more than $6000

b. Compute the probability that the company will receive less than or equal to $8000

c. Compute the amount that provides the company with a 90% chance of receiving at least that amount. That is, Find x for F(x) = 90% that is typically written as: x = F − 1(0.90), and is the inverse cdf.

d. What is the managerial use of the number in part (c)?