Question
Bike Inc. owns a bike service station in Florida, where the climate is warm year-round. Customers have often expressed the need, especially during summer, for
Bike Inc. owns a bike service station in Florida, where the climate is warm year-round. Customers have often expressed the need, especially during summer, for a cold drink facility at the station. The Cody Beverage Company has offered to lease Bike Inc a cold drink vending machine for $400 per month plus $0.40 per can of cold drinks. Bike Inc. would sell each can of cold drink for $1.50.
A regression equation estimated based on 30 observations gave the following prediction of sales of cans of cold drinks:
Sales units=0.70(number of customers) + 60 per month. The standard error of the estimate is 80 cans.
Requirement:
What is the probability that Bike Inc would earn zero income in June?
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