Question
Each day Homer takes a local train to commute between home and work. Each trip costs $3 if he purchases a ticket at a train
Each day Homer takes a local train to commute between home and work. Each trip costs $3 if he purchases a ticket at a train station. He is considering buying a monthly pass which costs $130 and allows up to 60 trips. If more than 60 trips are needed, Homer will pay for the extra trips at $3 per trip until the month period ends. (Homer will not purchase another monthly pass once he runs out.) If Homer ends up making less than 60 trips by the end of the month period, all unusedtrips remaining in the monthly pass will be discarded since a monthly pass expires at the end of each month and no carryover from one month to another is allowed. Homer estimates that his monthly demand for transportation is normally distributed with mean 45 and standard deviation 30.
1. If Homer buys a monthly pass, what is the probability that he will not have to pay for trips in excess of 60?
2. If Homer could choose the number of trips in his monthly pass and had to pay $2.25 for each trip in his pass, how many tickets should he include the monthly pass?
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